Value Killers: How Mergers and Acquisitions Cost Companies Billions-And How to Prevent It

Successful mergers and acquisitions are essential for corporate growth and profitability, but 60-70% of new mergers fail, destroying shareholder value. The Value Killers is the first book to analyze the M&A failure rate holistically and offers practical advice to increase the odds of success through 5 Golden Rules.

Format: Hardback
Length: 88 pages
Publication date: 15 July 2019
Publisher: Springer Nature Switzerland AG

In the fiercely competitive and ever-evolving business landscape, successful mergers and acquisitions have become crucial for the growth and profitability of numerous corporations. However, history has shown that a staggering 60 to 70 percent of new mergers fail, resulting in significant shareholder value destruction. To date, most analyses of M&A failure rates have focused on individual factors such as culture clashes, valuation methods, or CEO overconfidence, neglecting to examine the problem in a holistic manner.

The Value Killers is a groundbreaking book that sets out to change this narrative. Drawing on extensive research, insightful interviews with top executives, and compelling case studies, this book provides a comprehensive analysis of successful and unsuccessful transactions. It identifies the key factors that contribute to failures and successes, offering practical prescriptions to increase the likelihood of future transactions delivering the anticipated synergies.

The book offers five Golden Rules that serve as a roadmap for managers and boards to navigate the complexities of M&As. These rules cover the critical aspects of valuation, risk identification, evaluation, deal termination, and post-merger integration. By adhering to these rules, organizations can ensure that target companies are properly valued, potential synergies and risks are identified in advance, rational and objective evaluations are conducted, bad deals are promptly terminated, and obstacles to successful post-merger integrations are addressed before the deal closes.

Each chapter of The Value Killers includes thought-provoking questions for executives considering future M&As, allowing them to assess their readiness and identify areas for improvement. This book is a valuable resource for anyone involved in mergers and acquisitions, as it provides a comprehensive framework for success in this critical business domain.

In conclusion, the business climate is characterized by intense global competition and industry disruption, making successful mergers and acquisitions essential for corporate growth and profitability. The Value Killers offers a holistic analysis of M&A failures and successes, providing practical advice and five Golden Rules to increase the odds of success. By adopting these principles, organizations can navigate the complexities of M&As and achieve their strategic objectives while safeguarding shareholder value.

Weight: 340g
Dimension: 161 x 242 x 11 (mm)
ISBN-13: 9783030122157
Edition number: 1st ed. 2019