ECON 1 Lecture Notes - Lecture 19: Weyerhaeuser, Fatalism
Document Summary
Making mergers and acquisitions work: strategic and psychological preparation. Introduction: mergers and acquisitions continue to be mismanaged goal: distinguish successful from disappointing combination. Of acquisitions and mergers achieve their financial objectives = measured in shared value, return on investment and postcombination profitability. Why corporate combinations? costs, risks, technology, protect market share. Gain flexibility, leverage competencies, share resources and create opportunities. Combinations phases: precombination phase: deal is conceived/negotiated and legally approved by shareholders/ regulators, combination phase: integration planning, implementation decisions, postcombination phase: people regroup, new organization settles in. Putting a combination on the path toward success: Preparation in a combination covers strategic and psychological matters. Market status, strength and weaknesses, top management"s aspirations, goals = increased growth, profitability, market penetration to existing businesses. Clear criteria: team searches for candidates that fit. Generic set of criteria: guide firms overall combination program and strategy. Assessment and selection set of criteria: of a specific partner.
