Without strategy, execution is aimless. Without execution, strategy is useless.
—Morris Chang, CEO TSMC
Notwithstanding the importance of M&A strategy, its real value does not lie in the strategy per se, but rather in its successful execution. A deal in and of itself puts two entities together with potential for value creation. While some of that potential may be recognized by the market and reflected early in the stock price, no new value can be created until the deal closes and the postdeal execution begins. The toast at the closing party should be with Gatorade, not champagne.
Postdeal execution is particularly important for companies that have centered their strategy around M&A ...