How to make mergers work

Article Abstract:

The value of mergers increased by 50% in 1998 in relation to 1997, but under half mergers add value. many mergers have been defensive and have been triggered by excess capacity, contracting markets and drops in prices. Under 10% of mergers are for activities beyond the core businesses of companies. They also tend to involve agreed takeovers. Problems can still arise, such as the difficulty of marrying management teams that have previously been competitors, concern among employees who fear losing their jobs, and the opportunities offered to competitors seeking good staff, suppliers and customers.

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After the deal

Article Abstract:

Mergers have increased in value in 1997 and 1998 and further intense acitivity is expected in 1999. There are good reasons for many mergers, but there are also risks involved. The danger of high prices may have lessened due to the high number of agreed acquisitions and equity swaps. There is great importance attached to value creation by the merged companies, and integration after a merger is difficult ot achieve. Information technology and corporate cultures have to mesh, and there may also be anti-trust issues involved.

Mergers & Acquisitions, Cover Story

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How mergers go wrong

Article Abstract:

Lessons to be learnt from past mergers include the need for clarity on the strategy following a merger.

Editorial

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