Slides on Reasons Why Mergers and Acquisitions Often Fail

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Keating Lyden, LLC
Mergers and Acquisitions
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Mergers And Acquisitions (MA)

• What does Keating Lyden, LLC provide?
• Keating Lyden, LLC handles business
  acquisitions and sales of all sizes.
• We tailor each transaction according to the needs
  of our clients based on a variety of factors
  including size of the acquisition, nature of
  assets and liabilities involved and other
  specific goals of our clients.

• What is MA?
• Mergers and acquisitions is a general term of
  transactions in which the ownership of companies,
  other business organizations or their operating
  units are transferred or combined.

• For more information visit our website
  http//www.keatingandlyden.com/
• You can also call us today for your MA process
  at [phone]

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HELLO!

• I am Robert Keating
• I am sharing this presentation with you to
  provide a better understanding of the Mergers
  Acquisitions process, why it often fails, and why
  you need an external counsel to help you through
  it.
• Please like and share your comments!

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5 reasons that can lead to the failure of any
business merger

• Incapability at Team Resourcing
• External Factors and Change in Business
  Environment
• Issues Related to Cultural Integration
• Incompatibility with System Integration
• Other Factors That Leads to Failure

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Incapability at Team Resourcing
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• Companies often underestimate the importance of
  required resources, especially the human
  resource.

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Reasons for Incapability at Team Resourcing

• Releasing your best employees from the daily
  business to join the integration team can take 2
  to 3 months at least.
• Youll need to find and sign up the contractors
  to fill them.
• Setting up the teams infrastructure.

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External Factors and Change in Business
Environment
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External Factors and Change in Business
Environment

• Failures can also relate to external factors,
  such as
• Change in the business environment
• Major changes in the economy like recession
• The financial sector collapsing
• Taking the help of an expert during the process
  can help in minimizing the risk, as well as in
  cutting further losses.

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Issues Related to Cultural Integration
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Issues Related to Cultural Integration

• Issue
• Starting the integration without having a proper
  and clear strategy

• Solution
• You should be very clear about whether to
  forcefully integrate by setting aside cultural
  differences

• Or, to go the softer way and allow the
  local/regional businesses to run the respective
  units, but with clear targets and strategy on
  profit making.

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Incompatibility with System Integration
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Incompatibility with System Integration

• Incompatibility issues are common when youre
  planning to integrate the systems of the acquired
  business.

• If not supported by strong key internal resources
  and planning from many disciplines in both
  companies, as well as a strong outside
  consultant, the process wont succeed.

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Other Factors That Lead to Failure
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Other Factors That Lead to Failure

• Some other factors that lead to the failure of
  most mergers and acquisitions are
• If the parties to the merger or acquisition dont
  share a common vision including not having a
  clear statement of what the merged company will
  stand for, and how the organization will operate.
• Delay in making some tough decisions required for
  the success of the integration. These decisions
  may not please everyone, but then it will allow
  those who do not find the journey and destination
  appealing to distance themselves from the
  company.
• Most chief executives dont realize that many
  critically important and legally permissible
  works (apart from the ones that are prohibited to
  share before being under common ownership) can be
  handled while waiting for clearance by the
  regulatory authorities of the merger. This lack
  of preparation hampers the entire process.

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THANKS!

• Any questions?
• You can find me at
• _at_keatingandlyden KeatingandlydenLLC