Leading Across New Borders: How to Succeed as the Center Shifts

Chapter 6Global Mergers and Acquisitions: Beyond DiligenceThe Real Work Needed to Bring People Together and Make Any Deal Worthwhile

The Changing Landscape

Mergers and acquisitions are a primary growth strategy for companies domestically and worldwide. Although the decision to take such a step is typically left to a small circle of top executives and specialists, the implementation of a major transaction requires that leaders and employees at all levels collaborate effectively. Most members of today's corporate world can expect to experience a merger or acquisition sooner or later. Some will go through the process many times—which makes it especially important to foresee what can go wrong as well as how to obtain more positive results.

Industries old and new have been transformed as foreign suitors continue to purchase firms or major business units with distinctive identities. Such purchases include, for example:

• The European steel giant Arcelor by India's Mittal Steel
• Sweden's Volvo by Ford and later China's Geely
• U.S.-based Chrysler by Daimler-Benz of Germany and later Italy's Fiat
• Luxembourg-based Skype by eBay and later Microsoft in the United States
• IBM's personal computer and server divisions by China's Lenovo
• G.E. Plastic by SABIC of Saudi Arabia

Chagrin in Chicago: Part I

It was another cold March day in Chicago. The gray skies and dim light made it feel like once again winter would go on forever. Inside a large modern building on the outskirts of the city, however, ...