Synopses & Reviews
Given the sheer complexity of M&A deals, it's easy to see why so many of them fall short of their intended goals. Although mergers and acquisitions are no easy path to riches, it's definitely not a loser's game either. With the right attitude and understanding, it is possible to succeed in the world of mergers and acquisitions, and Robert Bruner, one of the foremost thinkers and educators in this field, wants to show you how.
The study of failure is the source of thoughtful advances, and in Deals from Hell: M&A Lessons That Rise Above the Ashes, Bruner focuses on M&A failures to help you achieve M&A success. Comprised of three information-packed partsThe Foundations of M&A Failure; Case Studies of M&A Failures; and Avoiding the Deal from Hellthis comprehensive guide offers a realistic look at how M&A transactions really work.
By addressing the key factors of M&A failure and success, Deals from Hell illustrates the best ways to analyze, design, and implement your own M&A deals. You'll gain valuable perspectives from the standpoint of previous research, and through ten real-world case studies, you'll discover how little an M&A situation must differ in order to deliver rather different results. Some of the cases examined include:
- AOL and Time Warner
- The acquisition of Snapple by Quaker Oats
- The acquisition of Columbia Pictures by Sony Corporation
- Renault's proposed merger with Volvo
- Mattel's acquisition of The Learning Company
- The acquisition program of Tyco International
All of the cases presented are paired with a counterpoint or complementary case. The comparison cases are not intended to be deals from heaventhey're merely examples of how thin the line is between M&A success and failure. After you've become familiar with the research and cases outlined in the first two sections of the book, Bruner concludes his M&A discussion with a look at the implications of these deals for CEOs, investors, and those concerned with public policy.
Filled with in-depth insights, expert advice, and valuable lessons gleaned from notably bad M&A transactions, Deals from Hell will change the way you think about M&A and help you understandas well as anticipatethe obstacles to M&A success.
A detailed look at the worst M&A deals ever and the lessons learned from them
It's common knowledge that about half of all merger and acquisition (M&A) transactions destroy value for the buyer's shareholders, and about three-quarters fall short of the expectations prevailing at the time the deal is announced. In Deals from Hell, Robert Bruner, one of the foremost thinkers and educators in this field, uncovers the real reasons for these mishaps by taking a closer look at twelve specific instances of M&A failure. Through these real-world examples, he shows readers what went wrong and why, and converts these examples into cautionary tales for executives who need to know how they can successfully navigate their own M&A deals. These page-turning business narratives in M&A failure provide much-needed guidance in this area of business. By addressing the key factors to M&A success and failure, this comprehensive guide illustrates the best ways to analyze, design, and implement M&A deals. Filled with in-depth insights, expert advice, and valuable lessons gleaned from other M&A transactions, Deals from Hell helps readers avoid the common pitfalls associated with this field and presents them with a clear framework for thinking about how to make any M&A transaction a success.
About the Author
"engages in the kind of candid thinking that has long been missing from the high stack of books." (The Wall Street Journal
, May 26, 2005)
"According to the author, six key elements embedded in disasters are 'complexity, tight coupling, management choices, cognitive biases, business not as usual, and failure of the operational team.' In unison, these are lethal, he cautions. 'Systems that adapt well to error anticipate it, actively seek information, use checkpoints to control the spread of error, and invite countervailing forces to oppose error.' So, what's the insight for businesses? 'Design of organisation structures and business processes could employ similar principles to thwart M&A failures,' counsels Bruner. Part II of the book has ten case studies, including AOL-Time Warner, Mattel-The Learning Company, and Renault-Volvo. Part III is about `conclusions and implications'. Bruner dins in before parting: 'The growth that matters is growth in economic value. The rest is smoke.' Fiery read!" -- D. Murali, The Hindu Business Line
Table of Contents
by Arthur Levitt, Jr.
I. The Foundations of M&A Failure.
2. Where M&A Pays and Where It Strays:A Survey of Research.
3. Profiling the Outlying M&A Deals.
4. Real Disasters and M&A Failure.
II. Case Studies of M&A Failure.
5. February 1968: Merger of the Pennsylvania and New York Central Railroads.
6. December 1986: The Leveraged Buyout of Revco Drug Stores.
7. September 1989: The Acquisition of Columbia Pictures by Sony Corporation.
8. September 1991: The Acquisition of NCR Corporation by AT&T Corporation.
9. December 1993: Renault’s Proposed Merger with Volvo.
10. December 1994: The Acquisition of Snapple by Quaker Oats.
11. May 1999: Mattel’s Acquisition of The Learning Company.
12. January 2001: Merger of AOL and Time Warner.
13. December 2001: Dynegy’s Proposed Merger with Enron.
14. January 2002: Acquisition Program of Tyco International.
III. Avoiding the Deal from Hell.
15. Conclusions and Implications.
16. Memo to the CEO:A Coda on Growth.
About the Author.