The Synergy Solution

 

CHAPTER 10

Conclusion

Getting M&A Right

Sometimes it seems like companies have a stricter approval policy for T&E expenses than they do for M&A. That’s a bit of an exaggeration, but it is certainly true that most companies have capital allocation approval processes where even small investments may take months of review to get approved, while multi-billion-dollar M&A deals get approved in a fraction of the time—without the same controls, processes, or discipline.

Over-eagerness to seize a target during a bidding process almost inevitably leads to a disappointing result. Wanting to get a deal done—where any deal could sound strategic, and there aren’t other alternatives on the table—can lead to a willingness to race to the finish line. Due ...