Why deals fail : and how to rescue them : M&A lessons for business success

M&A lessons for business success By Anna Faelten, Michel Driessen and Scott Moeller Exploring and explaining The Three Big Mistakes of Deal-Making through expert advice, stories and lessons. Mergers and acquisitions are part of the fabric of business and economic life: they help drive growth in companies of all sizes. Most executives will at some point in their careers experience a takeover, as buyer, seller or intermediary. Yet, despite M&A's obvious attractions, deals often fall short of expectations and, in extreme cases, can go disastrously wrong, with devastating consequences. From their unique perspective as practitioners and researches, Faelten, Driessen and Moeller have seen it all when it comes to M&A, and they've used this experience to develop their Three Big Mistakes of Deal-Making. Using case studies from a wide range of companies, many household names (Diageo, BMW, Microsoft, Kraft, HP and even Manchester United), and for deals ranging from the highly to the less successful to the downright questionable. Why Deals Fail offers both a commentary on the inexorable tendency for companies to merge, for good or ill, and a guide to the benefits and pitfalls of M&A as a growth strategy. The result is a fascinating insight into why some deals work and why others go awry for anyone interested in how the corporate world works, or contemplating or facing a merger or acquisition themselves Anna Faelten is a corporate finance advisor at EY, advising firms when raising and investing capital, and a visiting lecturer at Cass Business School. Michel Driessen is a senior partner at EY and a senior fellow at Cass Business School. During his career he has lead over 100 multi-billion pound transactions. Scott Moeller is a professor at Cass Business School and director of the M&A Research Centre. He is a former investment banker with Morgan Stanley and Deutsche Bank. 'A manual for making deals work.', Sunday Times "In 2014 the government of the UK--one of the most open markets globally for M&A--commissioned Cass Business School's Mergers and Acquisitions Research Centre, headed by Scott Moeller, to investigate whether M&A has a negative or positive impact on the country's economy. Their findings: M&A deals do generate short-term benefits for the economy, especially because some large deals were spectacularly successful. However, over the longer term, the results are less clear-cut. Despite those highly successful tie-ups that drove the economic results to an overall positive average, the majority of UK mergers by number in the research period actually destroyed value. In summary, deals can be hugely beneficial for all involved when you get it right but they still, at large, struggle to live up to their initial hype--and potential. Done wrong, they can damage business and, by extension, the economy and result in hundreds if not thousands of employees being made redundant. Most of the mergers detailed in this book are lessons in what not to do; the authors get behind the corporate veil to show what went wrong when huge and otherwise highly successful global businesses such as the Royal Bank of Scotland, Microsoft, and HP embarked on M&A transactions"--Amazon.com