Joining Forces: Making One Plus One Equal Three in Mergers, Acquisitions, and Alliances

Chapter IV. Psychological Preparation

The CEOs of two merging industrial products companies invited one of us to discuss their upcoming combination process. In their early sixties, both men planned to remain on board for a couple more years, see the integration through, and then turn over the leadership to a younger executive. The courtship between their companies had been friendly and, as part of the deal making, the two CEOs agreed on their roles in the combined operation. One would serve as chairman and oversee the administrative, finance, and marketing functions; the other would get the CEO title and lead sales and manufacturing. During the discussion, one CEO stated, "I don't understand why so many of these mergers fail. We seem to be making ...