Financial Analysis of M&A
Integration
Description
A Quantitative Measurement
Tool for Improving Financial PerformanceStuart FergusonIntegration difficulty--or culture
clash--is the most-cited reason for M&A failures. Financial Analysis of M&A
Integrationprovides an innovative tool for quantitatively anticipating and preventing
functional problems when combining companies and their disparate cultures. This dramatic
new approach will help decision-makers measure the direct impact of behavioral concepts
data on ROI, cost of sales, and other business ratios and indicators as they factor the
financial impact of cultural differences into valuation, shorten the integration period,
and reduce its related costs, and more.
Back
Cover
An Innovative New Tool for
Measuring--and Mitigating--the Financial and Human Perils of M&A Culture Clash
Integration difficulty--i.e.,
We cant get along with these people--is the most-cited reason for the failure of a merger
or an acquisition. But what if decision makers had a tool for measuring potential cultural
issues and barriers, planning mitigation procedures, or even reevaluating a deal that was
doomed from the start?
Financial Analysis of M&A
Integration introduces just such a tool. The QUOCA (Quantitative Organizational Cultural
Analysis) objectively measures the potential impact of combining organizations and their
dissimilar cultures and predicts the possible effect in traditional financial terms such
as ROI, payback period, and other business ratios and indicators. This hands-on book
provides:
- An
in-depth examination of the business combination process from conception through
integration
- An
understanding of the most misunderstood barrier to M&A success--clashes between
cultures of combining organizations
- An
innovative approach to predetermining the potential financial impact of combining
businesses and their cultures
Quantitative culture analysis
is a powerful tool for forecasting the potential success or failure of an M&A deal.
Financial Analysis of M&A Integration helps transform a significant barrier to M&A
success into an opportunity by defining and anticipating cultural hurdles before they
cause financial disasters.
The potential financial
benefits of a synergistic, perfect fit merger or acquisition are so immense as to be
almost immeasurable. So, conversely, are the perils when two or more culturally
incompatible organizations are combined into one.
In Financial Analysis of
M&A Integration, strategic planning and organizational change expert Stuart Ferguson
introduces a unique, quantitative tool for measuring the cultural issues and barriers that
can derail even the most carefully planned merger or acquisition. That tool--the
Quantitative Organizational Culture Analysis, or QUOCA--allows decision makers from any
industry to quantify the cultures of vastly different organizations and determine whether
the barriers can be overcome or should be avoided altogether.
Featuring examples from
real-world integrations, with analyses of how Dr. Fergusons QUOCA could have impacted the
events and saved the involved companies time and money, Financial Analysis of M&A
Integration provides:
- Strategies
for preparing for--or avoiding altogether--deals whose major cultural factors virtually
guarantee failure
- Methodologies
for accurately factoring the financial impact of culture on valuation and payback
calculations
- Proven
techniques for dramatically reducing the length and associated costs of the integration
period
In addition, the books
innovative and invaluable approach shows you how to ask--and answer--the make-or-break
questions that managers and executives are often afraid to confront. What are the employee
uncertainties on each side of the equation and how should they be addressed? Is the
acquired organization more strategically advanced than the acquirer--and, if so, how will
ruffled feathers on both sides be smoothed? Financial Analysis of M&A Integration
explains how to measure and address these and myriad other important cultural issues,
ensuring they dont leap from the shadows at the most inopportune, impractical moments.
When combining two or more
organizations, the financial costs of cultural fit have always fallen into the realm of
theory, guesswork, and, at most, empirical analysis. Financial Analysis of M&A
Integration allows executives to shed light on this once pitch-black area. Both
qualitatively logical and quantitatively sound, it takes todays most in-depth look at the
financial impact of the integration of disparate corporate cultures and helps to remove an
important variable--the previously immeasurable human factors that can make or break even
the most carefully planned integration--from the M&A equation.
Author
Biography
Stuart Ferguson, Ph.D., is
the founder of Organization Change Resources, a consultancy that focuses on issues from
culture assessment and development to organizational change, strategic planning, and team
building for such firms as Marriott, Merrill Lynch, MetLife, and others. Formerly a vice
president of global financial services at the American Re-Insurance Company, Dr. Ferguson
is a frequent speaker at conferences both in the United States and around the world.
358 PAGES