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What is M&A?. http://www.youtube.com/watch?v=P0hMSr6bZr4. Lecture Topics Covered. Definitions Size of M&A market Reasons – 15 M&A Problems Success Factors Failure Causes DEMERGER Integration Drivers – Suitable partner’s value add; culture compatibility, integration enablers.
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What is M&A? http://www.youtube.com/watch?v=P0hMSr6bZr4
Lecture Topics Covered • Definitions • Size of M&A market • Reasons – 15 • M&A Problems • Success Factors • Failure Causes • DEMERGER • Integration Drivers – Suitable partner’s value add; culture compatibility, integration enablers
M&A : A Commercial Example (source: http://www.tompkinsinc.com/strategic-market-planning/merger-acquisition-strategy/)
Success Drivers for M&A http://www.youtube.com/watch?v=sQ6xACl8hJk
Key Success Factors Organisational Integration http://www.youtube.com/watch?v=9BxWL4dRENI Cultural Drivers in M&A http://www.youtube.com/watch?v=2rir4lammZU
M&A Integration Approaches Need for Strategic Interdependence Low High 2 Criteria for determining the type of M&A Need for Autonomy Need for Strategic interdependence High Preservation Symbiosis Need for org Autonomy Holding Absorption Low • Need for Strategic Interdependence to create value via: • Resource sharing • Functional skills transfer • General management skills transfer • Combination benefits egleveraing cash reserves, borrowing capacity, customer base, added purchasing power, etc • Organisational Autonomy for preserving strategic capacity acquired via M&A: • How much autonomy • Which areas of autonomy
China’s M&A Developments PDI - Power Distant Index (equality contexts) IDV - Individualism Vs Group MAS - Masculine VS Feminine UAI - Uncertainty Avoidance Index LTO - Long Term Orientation (source : http://www.chinadaily.com.cn/cndy/2013-04/17/content_16413534.htm)
Current Issues in M&A http://www.youtube.com/watch?v=E1Bho5naq1g