Merge and Acquisition

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To my reputable professor: Dr. Sanya El Galaly A growth Acceleration Strategy for a rapidly changing world Summary of the article: Mergers & Acquisition (M&A) values for 2011 year were said to exceed a trillion dollars, an incremental percent increase over the previous years. Nearly seven out of 10 companies planned to make at least one acquisition in 2012, significantly higher than 2011. In the first six months of 2012, the number of corporate’ Mergers & Acquisitions deals jumped to nearly 5,900, up from about 5,100 in the first six months of 2011. However, the high rate of failure of Mergers & Acquisitions deals, coupled with a still-sputtering economy, has begun to weigh on corporate leaders,…show more content…
* LEADERSHIP ISSUES. Directions come from the top down, with little effort put toward engaging employees or generating enthusiasm for the new approach. * STRATEGIC ISSUES. The lack of clear strategic rationale for an acquisition as being a factor that leads to failure. A Different Model for Making Acquisitions Successful: * ALIGNMENT AROUND A CLEAR STRATEGIC PLAN(PRE-ACQUISITION) With a clear strategic plan in place, it is much easier to identify when an acquisition can help accelerate a company’s strategy than when there is a poor strategic fit. * WINNING HEARTS AND MINDS. All large-scale change requires buy-in from individuals across an organization not only the higher level of management. * ENGAGEMENT OF A CROSS-FUNCTIONAL INTEGRATION TEAM (POSTACQUISITION). Mergers and acquisitions tend to fail when cultures collide. * ADOPTION OF A LARGESCALE CHANGE FRAMEWORK. A project management approach to strategic partnerships is well understood, and is often within the comfort zone of financial managers. Conclusion & recommendations M&A is a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. Examples of M&A in the pharmaceutical field: Pfizer
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