Acquisitions have a poor record of creating value for shareholders. Studies have shown
that as many as 70% of mergers and acquisitions fail to meet their objectives. Some even
bankrupt the acquiring company. Why is this? Managers often have too little experience
with the acquisition process or make acquisitions for the wrong reasons.
Smarter Acquisitions will make sure you are part of the 30% that get it right. By
following ten key steps you can ensure that you get real value from your acquisitions. It
covers the entire acquisition process, from identifying targets through to integrating the
new company, providing you with the knowledge you need to lead an acquisition or to
participate at any stage.
Private equity is now a massive force in the marketplace This book gives you an overview
of this recently emerging phenomenon and will help you explore when you could profitably
incorporate this option into your acquisitions strategy.
Table of Contents
Preface
About the authors
Acknowledgements
Part 1 The context
1 Introduction
2 Private equity
3 Why acquisitions fail
4 Acquisition mechanics
Part 2 The process - the ten steps to successful acquisitions
5 Step 1 Formulating strategy
6 Step 2 Setting criteria
7 Step 3 Conducting a search
8 Step 4 Acquisition planning
9 Step 5 Using the right financial logic
10 Step 6 Negotiating a good deal
11 Step 7 Performing responsible due diligence
12 Step 8 Sale and purchase agreement
13 Step 9 Financing
14 Step 10 Implementation and integration
15 Summary of best practice
Appendices
Appendix A AT&T’s acquisition of BellSouth
Appendix B Imperial Group’s acquisition of Altadis
Endnotes
Index
David Sadtler is an Associate of the Ashridge Strategic Management
Centre. His research, teaching and consulting activities are concentrated on questions of
strategy at both the corporate and business unit levels. He is the author of a number of
articles on the issues and challenges of corporate level strategy.
Andrew Campbell is a Director of Ashridge Strategic Management Centre.
Andrew's work includes directing research projects, running management programmes and
consulting with client companies. Andrew has authored 10 books based on his research and
has also published numerous articles including six with the Harvard Business Review.
David Smith is an Associate of the Ashridge Strategic Management Centre.
He is an authority on mergers and acquisitions, valuation, and corporate investment
decision-making and lectures extensively on these topics. He has specialist experience of
consulting in media, marketing, manufacturing and financial services.
200 pages, Paperback
