Mergers & Acquisitions
A majority of mergers fails despite lots of experts convinced that the merger will be a great success.
Mergers & Acquisitions are fascinating
Mergers & Acquisitions aim at generating multiples. Every significant investment is worthwhile as long as the target has been well selected and the process is completed successfully. Investments in banks and consultants are significant. However, the success of an M&A process relies on getting a few more things right as well. McKinsey lists the top 10 areas to consider and recommends the application of powerful tools.
EIDOS Merger & Acquisition Template
The reason for the failures are obvious and quickly identified: complexity, uncertainty and weak risk management throughout the entire process including the Post-Merger-Intergation (PMI) phase. McKinsey has listed 10 "must haves" for M&As.
10 "must haves"
for Mergers and Acquisitions
Please point and hover to the progress bar to get additional hints.
...and the potential added value of EIDOS
*Source: Patrick Beitel, Jörg Mußhoff und Robert Uhlaner, Erfolg in M&A - so geht’s, in: Akzente, 01/2010 + own visualizaton of potential value contributions of EIDOS
World of Strategists and Leaders
Qualitative reasoning is required in strategy development because it is not possible to predict the future based on already measurable outcomes from the past:
Just as it’s not possible to drive a car by observing only the rear mirror, leaders can’t manage a company based exclusively on experience from the past (e.g. financial data).
To “stay on the road” or even “win the race” leaders need to adjust the path by using the steering wheel – to do so they need to have an idea of the overall roadmap.
World of Controllers and Financial Experts
Budget values are often based on assumptions about the future that are derived from discussions with e.g. representatives from the sales department.
These assumptions (e.g. about growth rates and sales performance) can change over time due to new insights and findings. The calculated quantitative impact needs to be integrated into the qualitative decision making process.
