Chapter I. The Elusive Equation

One plus one equals three. Billions of dollars and millions of jobs hinge on fulfilling this equation and the hope that a combination of two organizations can produce something more than the sum of the parts. Whether it's called synergy or leverage, the prospect of creating value through a combination is touted vigorously in boardrooms and executive suites where top managers and their financial, legal, and strategic advisers conjure up and put together deals.

The concept is alluring: combine the strengths of two organizations to achieve strategic and financial objectives that neither side could accomplish as easily or affordably on its own. The reality, however, is often woeful: up to three-quarters of corporate ...

Get Joining Forces: Making One Plus One Equal Three in Mergers, Acquisitions, and Alliances now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.