Scribd Logo
Upload

Welcome to Scribd!

  • 954 views

    Transnational Mergers & Acquisitions

    Uploaded by

    Viknesh Kumanan
    This document discusses mergers and acquisitions (M&As), focusing on transnational M&As. It defines mergers and acquisitions, noting mergers combine companies through negotiation while acquisitions can be hostile or agreed. The document outlines key drivers of success for transnational M&As: starting with a clear strategy, understanding markets and environments, conveying respect for acquired employees, and ensuring strong execution. It provides examples for each driver and concludes that creating repeatable processes can help future acquisitions be faster and better integrated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Transnational Mergers & Acquisitions

    Uploaded by

    Viknesh Kumanan
    954 views10 pages
    This document discusses mergers and acquisitions (M&As), focusing on transnational M&As. It defines mergers and acquisitions, noting mergers combine companies through negotiation while acquisitions can be hostile or agreed. The document outlines key drivers of success for transnational M&As: starting with a clear strategy, understanding markets and environments, conveying respect for acquired employees, and ensuring strong execution. It provides examples for each driver and concludes that creating repeatable processes can help future acquisitions be faster and better integrated.

    Original Description:

    M&As

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses mergers and acquisitions (M&As), focusing on transnational M&As. It defines mergers and acquisitions, noting mergers combine companies through negotiation while acquisitions can be hostile or agreed. The document outlines key drivers of success for transnational M&As: starting with a clear strategy, understanding markets and environments, conveying respect for acquired employees, and ensuring strong execution. It provides examples for each driver and concludes that creating repeatable processes can help future acquisitions be faster and better integrated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    954 views10 pages

    Transnational Mergers & Acquisitions

    Uploaded by

    Viknesh Kumanan
    This document discusses mergers and acquisitions (M&As), focusing on transnational M&As. It defines mergers and acquisitions, noting mergers combine companies through negotiation while acquisitions can be hostile or agreed. The document outlines key drivers of success for transnational M&As: starting with a clear strategy, understanding markets and environments, conveying respect for acquired employees, and ensuring strong execution. It provides examples for each driver and concludes that creating repeatable processes can help future acquisitions be faster and better integrated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 10

    By: Caroline Firstbrook

    Presented By: Viknesh Kumanan

    What are Mergers & Acquisitions?


    Mergers
    the combination of two or more companies into one new company

    or corporation, through a process of negotiation. (Kang & Johansson,


    2000)

    Acquisitions
    the combination of two or more companies into one new company

    or corporation, where negotiations do not take place.


    (Kang & Johansson, 2000)

    Acquisitions can be either: Hostile a take over where shares are acquired from the shareholders at a price that the target company directors do not recommend. (Lassere, 2012) Agreed - target company accepts the offer price for shareholding
    (Lassere, 2012)

    Transnational M&As
    More companies are looking overseas for merger partners or

    acquisition targets to meet their organisational growth aspirations


    M & As provide organisations with ready made access to

    customers, products, brands, distribution channels and market knowledge


    Potential revenue growth and cross selling of products provide

    opportunities for organisations


    Many organisations fail to understand that acquiring and

    merging with a company in an unfamiliar market can be risky

    Key Drivers of Success in Transnational M&As


    1.

    Start with a clear and compelling strategy

    2. Understand the markets and their environments


    3. Convey respect for employees of acquired company 4. Execution, execution, execution

    Start with a Clear and Compelling Strategy


    Transnational acquirers begin with a clear view how

    their acquisitions will affect their overall organisational strategy


    Acquiring organisations should pay attention when

    selecting acquisitions by making sure they best equipped and are able to meet their standards and roles.
    Example: Heineken

    Understand the Markets and their Environments


    Failure to understand culture, regulatory structure and

    competitive environment of M&A company


    Over optimisms on revenue growth and cost saving

    opportunities
    Assumption of customers in new markets are same as

    home market
    Example: Mercedes-Benz

    Convey Respect for Employees of Acquired Company


    Employees of acquired company are essential levers for

    extracting value in an acquisition as they possess:


    Local Market Knowledge Customer and Supplier relationships Technical capabilities and influence

    Sensitivity and attention to cultural gaps are important Example: Ben & Jerrys

    Execution, execution, execution


    Integration planning and execution must begin once a

    M&A is finalised
    Management should guide the integration process within

    both organisations whilst carrying out day to day operations

    Critical sources of value such as customer

    relationships and distribution channels need to be carefully managed


    Example: British Petroleum

    Conclusion
    Cross border acquisitions are like

    potato chips, you rarely want just one Caroline Firstbrook


    By creating repeatable processes

    and identifying internal experts, subsequent future acquisitions can be closed faster and integrated quicker with a higher chance of success.

    References
    Kang, N. and S. Johansson (2000), Cross-Border Mergers and Acquisitions: Their Role in Industrial Globalisation, OECD Science, Technology and Industry Working Papers, 2000/01, OECD Publishing.
    Lasserre, P. (2012) Global Strategic Management, 3rd ed., Palgrave MacMillan: Hampshire UK. Ch.5. Firstbrook, C. (2007) Transnational mergers and acquisitions: how to beat the odds of disaster, Journal of Business Strategy, 28, 1, 53-56.

    You might also like