Acquisitions – 10 Reasons Why They Fail | Small business news; tips; networking

Posted by IanDSmith under Management
From http://www.portfoliopartnership.com 4161 days ago

As we all adjust to the new normal it is clearly going to be tough to deliver growth. Acquisitions can be a powerful tool to execute your strategy but they are a graveyard of failures, missed opportunities and underdelivered promises. Why?

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Comments

Written by IanDSmith
4161 days ago

Great points. Post acquisition integration thinking done early reveals the fit or lack of it. It reveals how you will operationally run the business, It reveals the best way to structure the deal.

It even determines how you should approach due diligence. In other words a rigorous approach to integration is essential. The best examples from the big boys are Google, great approach Vs HP perhaps not so rigorous.

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Written by HeatherStone
4161 days ago

Hi Ian,

I think when you boil it all down, the real challenge faced when acquiring a new company is figuring out where all the pieces fit. This really comes down to integration, but ultimately I think even that is too general a term for it. Some acquired companies would be better off run almost as a separate business. Some have components which might naturally fit into your company. Some might be acquired specifically to get a hold of talent, technology or expertise you don't have and can't afford to develop. There are probably numerous other scenarios I'm ignoring here, but that's kind of the point. It's probably a good idea to have at least an idea where these pieces will fit before you decide on an acquisition rather than discovering, as even huge businesses do sometimes, that they have no way to successfully integrate what they've acquired.

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