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Taking The Mystery Out Of Acquisitions

Posted in Executive Leadership / General Management on October 24, 2012
There are (3) comments permalink


{#/pub/images/TakingTheMysteryOutofAcquisitions.jpg}When considering an Acquisition or Merger, what key elements of due diligence do you review?  How do you communicate your activity to employees?  David Shaffer details the impact of due diligence activities on decision-making and on employees in his latest article "Taking The Mystery Out Of Aquisitions".  It is a great tool to use to teach your organization about the process, as well as the importance of company vs financials.


Please share your experiences with us.  How have you managed employee concerns during and after due diligence activities?

Comments (3)

David Shaffer posted on: October 29, 2012

Thank you for the feedback DNB, your comments are even more pronounced when the acquisition involves a small, privately held company. As such it is important that all companies involved reach an understanding of the message to be delivered and how best to present the message. Clearly there are areas of cofidentiality as you pointed out but if appropriate communication is not present then the rumor mill will create plenty of communication.Just watch the water cooler or coffee machine meetings.

Thanks again for the input

Lisa Woods posted on: October 29, 2012

Good points DNB! I've seen situations where behind closed doors a list of key individuals is incorporated into the negotiation (must retain or no deal can occur) however, without knowing the reality, those key people left during the process due to, as you so correctly stated, negative visions of the future. I believe Leadership is a mechanism to teach, not only when a lesson needs to be learned, but by creating ongoing opportunities to raise the bar for large groups of people. By using tools like the one David created, leaders can do just that.

DNB posted on: October 24, 2012

Thanks, David, for sharing your article which highlights a number of the elements that need to be addressed in both pre-Acquisition Due Diligence and Integration Planning. Studies by several top consulting groups have indicated that 50% to over 80% of business acquisitions fail to achieve their expected results, due in great part to focusing all their attention on financial and legal due diligence, while underestimating the importance of addressing these and other areas of potential value enhancement or integration risk. As you so correctly point out, honest communications are essential throughout the process (within the confines of confidentiality agreements), as the last thing any company can afford to do is lose good people because they are creating their own (often negative) visions of the future, due to a lack of clarity from company leadership.

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