These insights came from our recent study of mergers in various countries and regions. We found that in most cases sales growth had slowed dramatically after the merger—on average, it had dropped six percentage points. The figures in this article are weighted averages adjusted for industry trends and refer to three years pre- or postmerger. That decline led to a reduced rate of earnings growth, by 9.
Indeed, in most of the mergers we studied, cost synergies such as consolidating manufacturing sites and centralizing administrative functions did boost profitability. Consider the merger of U. Similarly, after U. Earnings growth, our data show, has a strong effect on value creation, and the effect becomes more pronounced over longer periods of time.
Therefore, the postmerger firms must throw themselves into preventing or offsetting the customer attrition often the result of diminished trust that usually follows a merger. Managers must devote sufficient resources to retaining current customers and gaining new ones. That typically involves improving the customer experience by streamlining processes; creating consistent marketing messages on how the merger will improve offerings; minimizing changes in sales-account managers; ensuring that the formerly distinct companies present a single face to the customer; and attending to trivial-sounding but important matters like making sure the merged sales force has the correct name for each contact.
A number of companies have shown that such tactics can even help improve postmerger growth, regardless of whether synergies yield cost improvement. For instance, the merger of two large construction-equipment companies led to a decline in the operating profit margin, but revenue growth increased by more than 18 percentage points.
The companies achieved these numbers by focusing primarily on customers—not integration or synergies—after the mergers. Synergies can be beneficial in many ways.
See all free Kindle reading apps. Start reading Post-Merger Integration on your Kindle in under a minute. Don't have a Kindle? What other items do customers buy after viewing this item? No customer reviews. Share your thoughts with other customers. Write a customer review. Most helpful customer reviews on Amazon. Verified Purchase. This is more like a pamphlet than a book. There were a couple of useful tidbits, but there is not much here.
Post-Merger Integration: Improving shareholders' values after a merger [Michael Teng] on yrujavuxivyl.tk *FREE* shipping on qualifying offers. In the last few. Post Merger Integration: Improving Shareholders' Values After Merger [Michael Teng] on yrujavuxivyl.tk *FREE* shipping on qualifying offers. In the last few.
Disappointingly brief. Dr Michael Teng , the author has written a good book for many businesses.
Well done and congratulations. He has found the magic formula for increasing the chances of success of a merger and acquisition. I have gone through one messy merger myself and wish the management of the companies had read this book.
The value of shareholders was literally destroyed. Business owners and executives need to get this right otherwise many companies' values would be destroyed instead of enhanced upon a merger. Merger and acquision is the necessary pathways for many companies to grow and survive going forward.
Thus, I highly recommend the decision makers to read this book first. I read this book and concur with the view that most mergers fail because the companies neglected post merger matters.
Oftentimes, there is a big problem with differences in culture. I notice the acquiring company will send their staff to the acquired company and messed up the acquired company.
As a result, all the good people from acquired company resign. The loss is both parties as in the first place, the strategic reason for acquiring is the talent in the acquired company. Thus this book explains this very well.
The author is truly very useful. Many mergers and acquisitions fail because of post merger integration problems. He describes how ti improve the chances of success of merger and acqusition. Sure, a success formula for companies going for merger. Recommended this book for business students, executives and owners. Go to Amazon.
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