At the end of January I examined in an article on this blog what I regard as the most important aspects for successful company transactions. The following interview focuses on this topic again – especially on the importance of communication.
Mr Beyß, how many mergers and acquisitions have you handled, and what was your key insight?
Beyß: I was involved in about half a dozen acquisitions right from the beginning. The target companies were mostly medium-sized and managed by their owners. The main insight I have gained is very simple: Communication is key.
What do you believe to be the most common mistakes in the post-merger integration phase? Weiterlesen →
Technische Universität München (TUM) found in a study released at the end of 2010 that five out of six M&A transactions fail. One-third of the examined company acquisitions or sales were not based on a deliberate, strategic decision of the buyer or seller. Instead, they were triggered by external factors, often by an offer. In addition, due diligence was often undervalued; most of the examined companies did not want to spend money on this issue. Post-merger integration was another field where mistakes were made. While this issue was regarded as important, it remained a matter of “trial and error”; there were no attempts to arrive at methodical or appropriate solutions of upcoming problems. Weiterlesen →
It is common ground that China developed dramatically over the last years. From 2000 to 2007 the GDP increased by 100%. Taking only the export, it grew in 2009 from US $ 1,202 billion to US $ 1,577 billion in 2010. This means an increase by 31%. And looking at the ranking lists regarding the top 10 exporting nations, China improved by 9 rankings between 1997 and 2009 to the top position. And even if the dynamic is currently calming down, it is still growing. Weiterlesen →