Problems with Mergers and Acquisitions
"We launched our offer to give Wachovia shareholders a choice, and the shareholders overwhelmingly endorsed our deal," said Phil Humann, chairman, president and CEO of SunTrust Bank, "Basically the investment community in New York and Boston got cold feet, so we lost. But it was a perfect deal, and if the same circumstances occurred, we'd do it again." At SunTrust Bank and in the banking industry, in general, mergers and acquisitions are a work related problem all too often. This paper will describe the setting, frame the problem in two different ways, each reflecting specific forces of influence, examine other forces of influence, and provide an answer to the dilemma, "How are we able to accept mergers and acquisitions in the workplace and still are able to get anything done?" Let us now take a look at what current problems exist with mergers and acquisitions.
In a real sense, acquiring, merging, partnering, and venturing with third parties can begin with what looks like clear-cut organizing of strategic plans, priorities, people, and finance, but end in disaster. The majority of acquisitions are not truly successful within the target time frame especially when it involves international transactions. When one decides to go the merger and acquisitions (M&A) route, they must remember to seek advice often and always. Down the M&A route it is critical to maximize value, pick the most synergistic consolidations, and prepare a post-merger integration plan. Technologies, accounting systems, operations, human resources, and other issues all need to be integrated - and this is where a lot of merged companies fail. A successful post merger-integration plan is essential for the long term of any combined company.
The Acquisition Process
The acquisition process starts with planning the process and ends with planning how to...