Successful mergers and acquisitions examples

(Un)successful mergers and acquisitions examples

Examples of successfull CFIE M&A transactions can be found here

In this article I want to open a discussion on practical examples of (un)successful mergers and acquisitions examples. I want to focus on the larger corporate deals that everybody knows. Based on these larger examples we can determine what went wrong or what went right. This can help us to learn how to prevent these mistakes for the smaller deals we do.

mergers and acquisitions transportationI would like to ask you to mention one specific transaction that you see as the worst example of mergers and acquisitions and why you think the merger failed? I also would like to ask you to come up with a successful example in the area of mergers and acquisitions and why these companies succeeded?

Here’s a list of examples of good mergers and acquisitions transactions:

mergers & acquisitions ict
  • Good transaction of InBev and Anheuser-Busch
  • M&A transaction of Shell and Royal Dutch Petroleum
  • Mergers and acquisitions deal of J.P. Morgan and Chase
  • successful transaction of Disney and Pixar
  • Good mergers and acquisitions transaction: Exxon / Mobil

Why does it seem so difficult to find more examples of successful mergers and acquisitions? Are there really so little M&A deals that have been a success?

Here’s a list of examples of unsuccessful M&A transactions:

  • Daimler / Chrysler
  • RBS / ABN Amro (the other 2 parties of the buying syndicate are not mentioned here)
  • AOL / Time Warner
  • News Corp / MySpace
  • Alcatel / Lucent
  • Nokia / Siemens Networks

Do you know other examples of mergers and acquisitions that were a total disaster and why this transaction went wrong?

Possible examples of reasons for failures in mergers and acquisitions:

mergers and acquisitions chemicalsThere are many reasons why mergers and acquisitions can fail. I want to keep the level of detail as limited as possible. However, most failure factors seem to indicate a lack of knowledge among senior managers to cope with the known problems of M&A. The objective is to start a discussion here with input of various different people like yourself. I hope this will be a funny discussion from which we may learn something at the same time.

Here a list of possible reasons for failures in mergers and acquisitions:

  1. Lack of planning
  2. Limited synergies
  3. Difference in management or organization structures
  4. Wrong implementation of strategy
  5. Negotiation mistakes
  6. Difference in company culture
  7. Lack of knowledge by management
  8. Overpayment
  9. Difference in culture of countries
  10. Too high expectations
  11. Wrong integration approach
  12. Different strategies in R&D and Innovation

When writing about mergers and acquisitions failures I notice myself mentioning the word differences very often. Does this mean that companies that are different are less likely to be successful in mergers and acquisitions? Would it be that similar companies are more likely to succeed in mergers and acquisitions?

How to prevent failures in mergers and acquisitions. Do you have examples?

Are you able to give examples of good or bad mergers and acquisitions?

What are your thoughts, how should one prevent failures in mergers and acquisitions?

Please give your opinion here about examples of mergers and acquisitions.


Comments

Mike Rogers | Tuesday 24 June 2014 | website: www.therevenuegroup.net
You're identifying some very high profile transactions. The reason we know of more failures than successes is that the failures continue to get media coverage after a deal closes while the successful ones fade away. I'd argue there are more successful deals than failures.

Successful deals are a direct result of a good strategy. You can fix a bad deal, you can fix a poor integration, but you can't fix a bad strategy.

A good strategy is a result of a clear internal objective combined with forward-looking due diligence. I even advise the utilization of a premortem - look to identify what could go wrong, what will go wrong, in advance, before we start. Although predeal risk analysis is a part of the due diligence process, the premortem’s prospective hindsight approach offers benefits that other methods don’t.

Mike

CA Ankush | Friday 22 July 2016 | website:
I believe following should be consider for a good merger and acquisition. 1. Before starting the discussion related to M&A there must be clear idea and forecast among the management team. That is to say there should be no difference in opinion. This is the first stage where one should have a clear goal with clear strategies with no difference in opinion. 2. Merger should be done within same industry with same level of company. Because if the level doesn't match then it might lead to disputes in future. So always remember the industry and level. 3.There should be a blueprint before actual merger takes place which will clarify the role and responsibilities of every individual in the management which will help to achieve the basic targets. 4. In the initial years no unrealistic targets should be set, because if they are not achieved then the blame goes on that the merger is a bad merger.

Smithk324 | Saturday 24 March 2018 | website: cgeckebbeckccdbb.blogspot.com/
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