Reasons For Mergers and Acquisition Failure | Keating & Lyden, LLC

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HELLO!
I am Robert Keating sharing these slides 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.
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Keating Lyden, LLC
Reasons for Mergers and Acquisition Failure
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Mergers and Acquisitions (MA)
What is MA? Its a general term of transactions
in which the ownership of companies, other
business organizations or their operating units
are transferred or combined.
Credit access-information.com
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5 Reasons Mergers and Acquisitions Fail

1. Incapability at Team Resourcing
2. External Factors and Change in Business
   Environment
3. Issues Related to Cultural Integration
4. Incompatibility with System Integration
5. Other Factors That Lead to Failure

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

1. Releasing your best employees from the daily
   business to join the integration team can take 2
   to 3 months at least.
2. Youll need to find and sign up the contractors
   to fill them.
3. 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
• When parties to the merger or acquisition dont
  share a common vision.
• Delay in making some tough decisions.
• Lack of preparation hampers the entire process.

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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,
  such as
• Size of the acquisition
• Nature of assets and liabilities involved
• Other specific goals of our clients

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Keating Lyden , LLC
Contact No. [phone] Email
rkeating_at_keatingandlyden.com Fax (888)
350-9917 Website www.keatingandlyden.com
Address Boulder, CO Office 4450 Arapahoe Ave.,
Suite 100 Boulder, CO 80303
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Any questions? You can find me at _at_keatingandlyd
en KeatingandlydenLLC
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