Early June 2021, JPMorgan Chase Chief Executive, Jamie Dimon, said : « Investment banking, this could be one of the best quarters we have ever seen« . (FT Article)
Coming out of the pandemic period, some companies feel strong from a business and/or cash point of view and temptation for M&A as an option for growth is real amongst many boards of directors.
On the other hand, with the « impressive » Harvard Business Review findings on M&A failures ranging between 70 to 90%, it leads to really weigh such strategy. As clearly stated by HBR, assessing the M&A project from a client’s perspective seems a strong MUST.
As a reminder, M&A basically implies the integration of two companies under a single (new) corporate umbrella and mission. Because bringing together 2 (large) groups of people with their own history, personalities, ambitions, ways of working and ambitions,… no M&A deal must be undertaken lightly.
More than ever, the clarity of the vision and the related strategy is essential, so the M&A transaction is « fully » part of the trajectory to reach the objective enabling an easier execution.
Drawing a shared and clear desirable future appears to be another definite MUST.
Securing alignment within the management team of the company leading the Acquisition is crucial, requiring an open communication with the different stakeholders for the M&A deal to actually deliver the expected results, At the same time, it will facilitate the « sell and commitment » of the « target » management to make the project more likely to be successfull.
Working with a Business Sparring Partner to refine and/or review the strategy in relation to the M&A project is a lot of things but surely not a sign of weakness…
http://www.mobile-manager.net/backtostrategybasics/