Lessons From Failed Acquisitions
Sep 16, 2023
Acquisitions can reward when basic principles are followed. But what happens when they’re ignored?
3 big reasons acquisitions go wrong:
🔹 POOR FIT — Where post-deal integration is a mess or the business gets dismantled — perhaps due to clashing cultures/chemistry. Microsoft-Nokia is a prime example.
🔹 TOO RISKY — Hard to believe RBS spent €71bn on ABN Amro without due diligence, later needing a bailout. Success requires basic risk understanding and balance between parties.
🔹 OVERPAID — Buyers may pay a premium if a deal satisfies strategic goals. But overpaying happens — Elon Musk paid double Twitter’s value by his own admission. Good for shareholders, bad for buyer.
#UKBusiness #SME #ExitLaunchpad #M&A #Mergers #Acquisitions
