2

What to do to prevent Failure of a merger?

Hey,

I got a question:

What measures can we take (legal and culturally) to prevent failure of a merger?

Thanks.

Hey,

I got a question:

What measures can we take (legal and culturally) to prevent failure of a merger?

Thanks.

2 Antworten

  • Upvotes
  • Datum aufsteigend
  • Datum absteigend
Beste Antwort

A lot of mergers fail because the cultures do no mesh.

Some points on this:

- Culture is built around core values: integrity, trust, cost efficiency, growth mindset, customer orientation etc. It might be prudent to have a look on how the core values match together.

- Also, culture is a set of norms and socially accepted behaviours. When two cultures clash on each, this is often because of norms and behaviours are incompatible.

- Culture is not built in a day. Creating a new culture in a organisation may need time or new staff.

- Culture and behaviours are usually shaped through motivational factors and incentives (competitive, burocratic, integrative cultures etc.) It might be worth looking into what motivates people to understand the culture and align on this.

Hope this helps.

Cheers

A lot of mergers fail because the cultures do no mesh.

Some points on this:

- Culture is built around core values: integrity, trust, cost efficiency, growth mindset, customer orientation etc. It might be prudent to have a look on how the core values match together.

- Also, culture is a set of norms and socially accepted behaviours. When two cultures clash on each, this is often because of norms and behaviours are incompatible.

- Culture is not built in a day. Creating a new culture in a organisation may need time or new staff.

- Culture and behaviours are usually shaped through motivational factors and incentives (competitive, burocratic, integrative cultures etc.) It might be worth looking into what motivates people to understand the culture and align on this.

Hope this helps.

Cheers

Coaching mit Sidi vereinbaren

99% Empfehlungsrate

388 Meetings

2.781 Q&A Upvotes

319 USD / Coaching

Hi!

As usual with brainstorming questions, please use a driver tree to disaggregate your are of scrutiny into its components. So the first question is "In which different ways can a merger fail?". Or asked differently - what characterizes "failure" of a merger? For example it culd be falling short of cost synergy targets, falling short of projected revenues, failing to integrate internal systems, failing to harmonize core processes, failure to marry cultures of related departments or the entire organization, etc. etc. Then you need to develop ideas for each of these arms, what kind of measures could prevent these issues (you might need to drill deeper into some of these issues first to isolate the actual drivers of the specific failures).

So this question is answered in an identical way as any other brainstorming question - with rigorous and crystal clear LOGIC.

Cheers, Sidi

Hi!

As usual with brainstorming questions, please use a driver tree to disaggregate your are of scrutiny into its components. So the first question is "In which different ways can a merger fail?". Or asked differently - what characterizes "failure" of a merger? For example it culd be falling short of cost synergy targets, falling short of projected revenues, failing to integrate internal systems, failing to harmonize core processes, failure to marry cultures of related departments or the entire organization, etc. etc. Then you need to develop ideas for each of these arms, what kind of measures could prevent these issues (you might need to drill deeper into some of these issues first to isolate the actual drivers of the specific failures).

So this question is answered in an identical way as any other brainstorming question - with rigorous and crystal clear LOGIC.

Cheers, Sidi

Verwandte BootCamp-Artikel

Opportunity Costs

Opportunity costs are an economic concept to quantify benefits of (discarded) alternatives. They measure the lost benefits that occur if you choose the best alternative instead of the second best one.

Quiz

Competitive Response

In a competitive response case study, your job is either to analyze what your client should do in response to a move performed by a major competitor or to anticipate what competitors will do in response to a move performed by the client

Mergers and Acquisitions

Mergers & Acquisitions are often the answer to broader problems introduced in your Case interviews. Analyze feasibility, assets, target and industry to crack the Merger & Acquisition case

Cost-Benefit Analysis

Investments or single business cases need to be evaluated based on a certain set of criteria. Since financial performance is the key criterion in most cases you need to have an idea about future financial impacts. A key tool to asses this impact is the cost-benefit analysis which is used to determine the net effect of potential revenues and costs.

1 Q&A

Verwandte Cases

Bain Case: Altes Weingut

52,9 Tsd. mal gelöst
Bain Case: Altes Weingut Sie erben von Ihrem Großvater ein Weingut, die Old Winery, welche sich seit fünf Generationen in Familienbesitz befindet und bis ins 16. Jahrhundert datiert werden kann. Auf den elf Hektar der Old Winery werden konventionell, d.h. nicht biologisch betrieben und zertifiziert, je zur Hälfte weiße und rote Trauben angebaut, wobei der Rebbestand bezüglich Alter und Pflege in gutem Zustand ist. Insgesamt werden nur ¼ der Ernte selbst zu Wein gekeltert; der Rest wird weiterverkauft. Ihr Großvater, der selbst am Image des Weinguts nichts verändern wollte, überließ die Bewirtschaftung und Verwaltung einem jungen dynamischen Winzer. Auf Grund des wenig bekannten Images des Weinguts ist die aktuelle Nachfrage nach dem eigenproduzierten Wein nicht besonders hoch. Da Sie sich mit Weinanbau wenig auskennen, wollen Sie das Weingut nicht operativ leiten, aber finden die Idee spannend, ein Weingut zu besitzen. Ihr Plan ist es jedoch, dem Weingut einen frischen Wind einzuhauchen.
4.4 5 1381
| Bewertung: (4.4 / 5.0)

Sie erben von Ihrem Großvater ein Weingut, die Old Winery, welche sich seit fünf Generationen in Familienbesitz befindet und bis ins 16. Jahrhundert datiert werden kann. Auf den elf Hektar der Old Winery werden konventionell, d.h. nicht biologisch betrieben und zertifiziert, je zur Hälfte weiße und ... Ganzen Case öffnen

General Holding

40,1 Tsd. mal gelöst
General Holding Der Klient ist eine französische Holding, welche einen jährlichen Umsatz von €1 Milliarde hat. Sie halten fast alle Arten von Unternehmen, die meisten in der „Low tech Herstellung“, darunter unter anderem auch „Öl & Gas“ und „Automobil“ Firmenteile. Es gibt keinen bestimmten Bereich auf den sie ihre Investments fokussieren; sie kaufen eher die besten Unternehmen im Markt, welche nicht komplett unverwandt mit ihrem bestehenden Business sind. Sie denken nun darüber nach einen Autoteilehändler, OTOpart, zu akquirieren und möchten unsere Meinung haben, ob es eine gute Idee ist.
4.3 5 1356
| Bewertung: (4.3 / 5.0) |

Der Klient ist eine französische Holding, welche einen jährlichen Umsatz von €1 Milliarde hat. Sie halten fast alle Arten von Unternehmen, die meisten in der „Low tech Herstellung“, darunter unter anderem auch „Öl & Gas“ und „Automobil“ Firmenteile. Es gibt keinen bestimmten Bereich auf den sie ihr ... Ganzen Case öffnen

Chip equity

32,8 Tsd. mal gelöst
Chip equity Unser Klient ist Chip’n‘Chip, eine Holding für Unternehmen aus dem Elektronikbereich.        Sie möchten in OnBoard, ein Platinen Hersteller, investieren und fragen, ob es eine gute Investition ist. Wie würdest du ihnen helfen?
4.5 5 1149
| Bewertung: (4.5 / 5.0) |

Unser Klient ist Chip’n‘Chip, eine Holding für Unternehmen aus dem Elektronikbereich. Sie möchten in OnBoard, ein Platinen Hersteller, investieren und fragen, ob es eine gute Investition ist. Wie würdest du ihnen helfen? Ganzen Case öffnen

Paper Print

14,6 Tsd. mal gelöst
Paper Print A printing company is planning to take over another printing company with similar technology and printing machines. The candidate is supposed to evaluate the acquisition by answering a line of questions that are presented in the “suggested approach” section.
4.2 5 334
| Bewertung: (4.2 / 5.0) |

A printing company is planning to take over another printing company with similar technology and printing machines. The candidate is supposed to evaluate the acquisition by answering a line of questions that are presented in the “suggested approach” section. Ganzen Case öffnen

SuperBurger

12,6 Tsd. mal gelöst
SuperBurger Our client is SuperBurger, a fast food chain that operates in the same class as McDonalds, Wendy's, Burger King and so on. They're the fourth largest fast food chain worldwide in terms of number of stores in operations. SuperBurger owns some of its stores, but 85% of its stores are owned by franchisees. As part of its growth strategy, the company has analyzed some potential acquisition targets including Tasty Donuts which is a growing doughnut producer active in the US and internationally.  The client asked us to help him decide whether he should acquire the company or not. 
4.0 5 1174
| Bewertung: (4.0 / 5.0)

Our client is SuperBurger, a fast food chain that operates in the same class as McDonalds, Wendy's, Burger King and so on. They're the fourth largest fast food chain worldwide in terms of number of stores in operations. SuperBurger owns some of its stores, but 85% of its stores are owned by franchis ... Ganzen Case öffnen