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5

Truths
acquirers disregard
When they consider
Mergers and Acquisitions

Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il

1
1.

We don’t really know much
about M&A.
It’s true - most of the data we have relates to publicly held,
large corporations while most firms around the world are
privately held SMEs. This is very much like trying to figure
out how a state highway looks like at night with only a flashlight…

Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il

2
2.

M&A ≠ Strategy
Despite what executives often claim, M&A is only a vehicle,
a means by which firms may achieve their goals (for example,
growth through related acquisitions)

Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il

3
3.

Chances?
Research shows chances of profiting from M&A are similar
to those of a coin toss - 50%...

Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il

4
4.

Turnover of senior managers increases
significantly following acquisitions.
Research shows that management turnover rates more than
double following an acquisition. This means that much
know-how and organizational resources are lost.

Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il

5
5.

So much can go wrong…
There might not be a fit between the
firms, the process may be incorrect,
biases influence and the pricing may be
inaccurate… not to talk about the integration.
There’s much to fear.
Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il

6
Find more presentations and information on
my website: www.friedman.org.il

Copyright 2014 @ Yair Friedman. All Rights Reserved

7

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5 truths acquirers disregard When they consider Mergers and Acquisitions

  • 1. 5 Truths acquirers disregard When they consider Mergers and Acquisitions Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il 1
  • 2. 1. We don’t really know much about M&A. It’s true - most of the data we have relates to publicly held, large corporations while most firms around the world are privately held SMEs. This is very much like trying to figure out how a state highway looks like at night with only a flashlight… Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il 2
  • 3. 2. M&A ≠ Strategy Despite what executives often claim, M&A is only a vehicle, a means by which firms may achieve their goals (for example, growth through related acquisitions) Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il 3
  • 4. 3. Chances? Research shows chances of profiting from M&A are similar to those of a coin toss - 50%... Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il 4
  • 5. 4. Turnover of senior managers increases significantly following acquisitions. Research shows that management turnover rates more than double following an acquisition. This means that much know-how and organizational resources are lost. Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il 5
  • 6. 5. So much can go wrong… There might not be a fit between the firms, the process may be incorrect, biases influence and the pricing may be inaccurate… not to talk about the integration. There’s much to fear. Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: yair@friedman.org.il 6
  • 7. Find more presentations and information on my website: www.friedman.org.il Copyright 2014 @ Yair Friedman. All Rights Reserved 7