Why Acquisitions Fail
Practical Advice for Making Acquisitions Succeed
Published on 5. July 2001
Book
Paperback/Softback
256 pages
978-0-273-65364-6 (ISBN)
Description
When acquisitions go disastrously wrong they can bring down the entire company. Equally, astute acquirers can achieve excellent growth or even transform their businesses through successful acquisition. This briefing is a definitive guide to avoiding the pitfalls of acquisition. It is based on practical experience and is also backed by an independent survey of over 350 transactions and over 70 case studies. The briefing highlights the 20 main reasons for failure. These are grouped in the five phases of any acquisition; starting from initial planning through to the completion of integration. Contents include:
Executive summary
Flawed business logic
Flawed understanding of the new business
Flawed deal management
Flawed integration management
Flawed corporate development
Checklist for success
A mistake in any one of these areas can be enough to turn a potentially successful acquisition into a disaster. Denzil Rankine is founder and chief executive of AMR International, a London-based strategy consultancy specialising in acquisition; over the past 20 years he has advised on 500 acquisitions in 32 countries.
Executive summary
Flawed business logic
Flawed understanding of the new business
Flawed deal management
Flawed integration management
Flawed corporate development
Checklist for success
A mistake in any one of these areas can be enough to turn a potentially successful acquisition into a disaster. Denzil Rankine is founder and chief executive of AMR International, a London-based strategy consultancy specialising in acquisition; over the past 20 years he has advised on 500 acquisitions in 32 countries.
More details
Series
Language
English
Place of publication
Harlow
United Kingdom
Publishing group
Pearson Education Limited
Target group
Professional and scholarly
Dimensions
Height: 298 mm
Width: 210 mm
Thickness: 17 mm
Weight
880 gr
ISBN-13
978-0-273-65364-6 (9780273653646)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Person
Denzil Rankine is chief executive of AMR International, a London-based strategy consultancy with offices in the USA and Germany. AMR is Europe's leading specialist in commercial due diligence - the investigation of target companies' markets, market positions and prospects.
Denzil studied law. After two years in the re-insurance industry he began a career in consulting, specialising in business development and acquisitions. Over the next four years he visited 49 American states helping countless European companies establish themselves in the US market.
In 1987 he was asked to set up the strategic research consulting practice for a major management consulting firm. Under Denzil's leadership, and working closely with the corporate finance group, it soon became one of the first consultancies to offer commercial due diligence.
Denzil founded AMR in 1991; it is now Europe's leading specialist in commercial due diligence. AMR's success is due to its fact-based approach to company, market and competitor analysis.
The company has investigated more than 500 transactions in more than 30 countries in a wide variety of business sectors. The value of these transactions has ranged from relatively small GBP1 million deals to complex, cross-border transactions of the GBP1 billion size. AMR has worked for most of the private equity providers in London and Europe as well as corporate acquirers from large multi-nationals to small private companies. AMR's consultants have on average eight years of strategic research experience, typically gained after earlier careers in operational roles. Most are fluent in at least one other language other than English.Denzil Rankine is also one author of A Practical Guide to Acquisitions (Wiley, 1998) and Commercial Due Diligence (Prentice Hall, 1999).
Denzil studied law. After two years in the re-insurance industry he began a career in consulting, specialising in business development and acquisitions. Over the next four years he visited 49 American states helping countless European companies establish themselves in the US market.
In 1987 he was asked to set up the strategic research consulting practice for a major management consulting firm. Under Denzil's leadership, and working closely with the corporate finance group, it soon became one of the first consultancies to offer commercial due diligence.
Denzil founded AMR in 1991; it is now Europe's leading specialist in commercial due diligence. AMR's success is due to its fact-based approach to company, market and competitor analysis.
The company has investigated more than 500 transactions in more than 30 countries in a wide variety of business sectors. The value of these transactions has ranged from relatively small GBP1 million deals to complex, cross-border transactions of the GBP1 billion size. AMR has worked for most of the private equity providers in London and Europe as well as corporate acquirers from large multi-nationals to small private companies. AMR's consultants have on average eight years of strategic research experience, typically gained after earlier careers in operational roles. Most are fluent in at least one other language other than English.Denzil Rankine is also one author of A Practical Guide to Acquisitions (Wiley, 1998) and Commercial Due Diligence (Prentice Hall, 1999).
Content
List of tables
List of figures
List of case studies
Introduction
PART ONE: FLAWED BUSINESS LOGIC
Management summary
Should not have been acquiring
Wrong strategy
Opportunism
Did not consider alternatives
PART TWO: FLAWED UNDERSTANDING OF THE NEW BUSINESS
Management summary
Misjudged the market
Did not understand the business model 61
Over-estimated the potential synergies
Problem areas not identified in due diligence
PART THREE: FLAWED DEAL MANAGEMENT
Management summary
Paid too much
Poor negotiation
Hampered by process
Integration plan not developed in advance
PART FOUR: FLAWED INTEGRATION MANAGEMENT
Management summary
Poor communication
Wrong steps to implement change
Scale of the task under-estimated
Lack of clear leadership
PART FIVE: FLAWED CORPORATE DEVELOPMENT
Management summary
Changes were inappropriate
Cultural differences not addressed
Customers ignored during integration
Own business ignored during integration
Appendix
Checklist for successful acquisition
List of figures
List of case studies
Introduction
PART ONE: FLAWED BUSINESS LOGIC
Management summary
Should not have been acquiring
Wrong strategy
Opportunism
Did not consider alternatives
PART TWO: FLAWED UNDERSTANDING OF THE NEW BUSINESS
Management summary
Misjudged the market
Did not understand the business model 61
Over-estimated the potential synergies
Problem areas not identified in due diligence
PART THREE: FLAWED DEAL MANAGEMENT
Management summary
Paid too much
Poor negotiation
Hampered by process
Integration plan not developed in advance
PART FOUR: FLAWED INTEGRATION MANAGEMENT
Management summary
Poor communication
Wrong steps to implement change
Scale of the task under-estimated
Lack of clear leadership
PART FIVE: FLAWED CORPORATE DEVELOPMENT
Management summary
Changes were inappropriate
Cultural differences not addressed
Customers ignored during integration
Own business ignored during integration
Appendix
Checklist for successful acquisition