Acquisitions

The title does not accurately describe this book. There is absolutely no substantial discussion around post-merger integration. I must have been confused by the "After the Merger" title, there is limited value to this book if you are looking for strategies of how to handle merger integration, and little value for other purposes as well. The book describes generalities, for example: it takes the authors approximately 15 pages to relate that mergers should not be focused on cost cutting "efficiency synergies", rather they should be focused on "Growth Synergies". If you already have a basic understanding of merger integration concepts, this book is a waste of your time.

The word "merger" is one apt to strike fear in the hearts of any employee of a successful company in this era of globalization. No matter in what market you are or the size your company has, it is a possible target (or "source") for a future merger. As it is mentioned in the introduction of this book: any employee will experience at least one merger during his/her working life!

But, being such an important move, why are only 42% of the mergers successful? Why are they so focused on "fit" and "synergy" instead of vision and growth? Why have 86% of the companies failed in communicating their new alliance sufficiently? Why do only 32% of merging companies actively pursue risk management?

Having so many questions in mind, we should ask at least another one: What about the future?

The 3 authors, all top executives of A.T.Kearney with extensive experience in Mergers and Acquisitions (M&A), will not give the reader all the answers but at least show the way. They develop that subject focusing on 7 simple, but effective, rules that should help you steer through a merger a successful integration: Vision, Leadership, Growth, Early Wins, Cultural Differences, Communication and Risk Management. After placing the reader in a hypothetical situation related to each rule, the authors briefly explain it, point some facts they confronted in the A.T.Kearney Global PMI (Post-Merger Integration) Survey and give many examples (more than 40) involving well-known companies which had both successful and unsuccessful attempts in mergers, such as Novartis, Aventis and Exxon Mobil. These examples bring the subject into focus and help the reader understand how the particular rule being explored impacts the post-merger integration. At the end of each chapter, the authors state the rule and give the reader some practical suggestions on how to apply each rule to their own situation.

This book presents a powerful blueprint on how post-merger integration should be done. The seven rules presented confirmed how critical the so called Triangle of Merger Success (Get Buy-in, Provide Orientation and Manage Expectation) is during the post-merger integration process.

I strongly recommend this book to all professionals, especially those who are facing a merger, and top managers, who are/would be responsible for a present/future post-merger integration. It is an easy-to-read book, interesting and the case studies are clear and do not detract from the main thrust of the book.