Most mergers fail. It's an assumption repeated so often that few would dare question it. But is it true?
During the 1990s, it was indeed true--confirmed by a 2001 Booz Allen Hamilton study that found that two-thirds of all mergers fell short of expectations. In the intervening years, however, much has changed. The Internet boom and bust made their mark. New regulations brought far greater scrutiny - and accountability - to senior management and boards of directors. Merger activity has come and gone and come once again.
Today, in an altered business landscape, a close look at current merger activity suggests a different point of view. Companies no longer should expect or accept the probability of merger failure.
Most mergers fail. It's an assumption repeated so often that few would dare question it. But is it true?
During the 1990s, it was indeed true--confirmed by a 2001 Booz Allen Hamilton study that found that two-thirds of all mergers fell short of expectations. In the intervening years, however, much has changed. The Internet boom and bust made their mark. New regulations brought far greater scrutiny - and accountability - to senior management and boards of directors. Merger activity has come and gone and come once again.
Today, in an altered business landscape, a close look at current merger activity suggests a different point of view. Companies no longer should expect or accept the probability of merger failure.
Mergers: Back to "Happily Ever After"
Most mergers fail. It's an assumption repeated so often that few would dare question it. But is it true?
During the 1990s, it was indeed true--confirmed by a 2001 Booz Allen Hamilton study that found that two-thirds of all mergers fell short of expectations. In the intervening years, however, much has changed. The Internet boom and bust made their mark. New regulations brought far greater scrutiny - and accountability - to senior management and boards of directors. Merger activity has come and gone and come once again.
Today, in an altered business landscape, a close look at current merger activity suggests a different point of view. Companies no longer should expect or accept the probability of merger failure.
Read this report on Mergers.
Posted on February 17, 2006 at 10:57 PM in Industry News & Commentary | Permalink