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