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GPMIP Insights | Australia
4 factors to guarantee you will lose value on your acquisition or merger
 
Ignoring Culture

Culture eats mergers and acquisitions for breakfast! Cultural challenges aren’t just restricted to cross-border transactions. Culture can raise its head when large companies acquire smaller businesses or when two companies have differing sales strategies. Culture needs to be properly assessed during Due Diligence and incorporated into the integration plan from Day 1.

Poor Communication

Clear, consistent and regular communication is critical to deal success and another post-deal mechanism that needs to be implemented from Day 1. Employees, customers, suppliers, and shareholders all need to know what is happening and how it might impact them. Without effective communication, people will make their own assumptions and act accordingly.

Procrastination

The M&A maxim should be ‘Act Swiftly but Act Fairly'. Maximising post-deal value depends on it. Once you’ve made a decision, it is important to act on it and realise the value that can be created. There are too many deals in today’s market where procrastination looms large and too many deals that subsequently fail to achieve the anticipated pre-deal vision.

Stretched Resources

There are too many instances where a deal is completed and then passed over to operational management. It’s one of the easiest ways to lose post-deal value.

  • Your management team should be 100% focused on their day job, so how can they dedicate sufficient time to the acquisition?
     
  • Most operational managers have limited acquisition integration experience and irrespective, tend to display bias in decision making.

 
When the long-term implications of your deal matter most, Global PMI Partners delivers focus, value and enduring success.
Contact Us Now
Robert Heaton
Senior Executive Advisor
+61 400 756 585

robert.heaton@gpmip.com


Global PMI Partners – Australia
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