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As another M&A wave begins: three keys to success

As another M&A wave begins: three keys to success As the Covid-19 crisis recedes, struggling firms will be bought by bargain hunters and suffering industries will consolidate, giving rise to another wave of M&A transactions. But buyers beware! There is ample evidence that M&A creates significant post-deal performance issues for acquiring “buy-side” firms.Design/methodology/approachNew research shows that effectively managing three processes of acquisitions can have an outsized beneficial impact on M&A success.FindingsRecent research has identified three mission-critical tasks that stand out as being vital to creating M&A success: Process 1: Accurately valuing targets. Process 2: Proficiently managing post-merger integration. Process 3: Skillfully addressing the “big-three human factors” of M&A.Practical implicationsRobust talent retention and re-recruitment plans initially entail identifying key talent, defined as individuals and groups who are essential to retain and re-recruit during a transitionary period and those required for long-term value creation.Originality/valueThe articles describes best practices for post-deal M&A activities companies could perform better including operations and technology integration, communication, cultural analysis and integration, talent management and retention, senior leadership involvement and measurement and reporting. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategy & Leadership Emerald Publishing

As another M&A wave begins: three keys to success

Galpin, Timothy J.
Strategy & Leadership , Volume 49 (2): 8 – Jul 7, 2021
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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1087-8572
eISSN
1087-8572
DOI
10.1108/sl-01-2021-0008
Publisher site
See Article on Publisher Site

Abstract

As the Covid-19 crisis recedes, struggling firms will be bought by bargain hunters and suffering industries will consolidate, giving rise to another wave of M&A transactions. But buyers beware! There is ample evidence that M&A creates significant post-deal performance issues for acquiring “buy-side” firms.Design/methodology/approachNew research shows that effectively managing three processes of acquisitions can have an outsized beneficial impact on M&A success.FindingsRecent research has identified three mission-critical tasks that stand out as being vital to creating M&A success: Process 1: Accurately valuing targets. Process 2: Proficiently managing post-merger integration. Process 3: Skillfully addressing the “big-three human factors” of M&A.Practical implicationsRobust talent retention and re-recruitment plans initially entail identifying key talent, defined as individuals and groups who are essential to retain and re-recruit during a transitionary period and those required for long-term value creation.Originality/valueThe articles describes best practices for post-deal M&A activities companies could perform better including operations and technology integration, communication, cultural analysis and integration, talent management and retention, senior leadership involvement and measurement and reporting.

Journal

Strategy & Leadership – Emerald Publishing

Published: Jul 7, 2021

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