ANALYSIS OF REAL MERGER/ACQUISITION CASES
Using the Argosy library, Internet and other sources, locate two examples of mergers or acquisitions that failed. Be sure the articles contain enough information about what actually happened in the failed merger or acquisition so that you can answer the questions below.
Directions:
1. Write a review comparing the two unsuccessful mergers/acquisitions you found. Address the following questions for each of the mergers/acquisitions you chose:
1. What was the motive behind the merger/acquisition? What internal and external factors impacted the merger/acquisition decision? Use specific examples to justify your response.
2. Which of the two unsuccessful merger/acquisitions you reviewed held the most risk of not working from the onset? Why? Give examples.
3. Did either company use metrics during the merger/acquisition process to measure their progress? Describe and explain at least two additional metrics which could have been used by each company in monitoring their progress during the M&A process.
2. Read the following article: What makes a merger successful by Paul Walker and David Hannawhich describes a successful merger. Comment on the following:
1. What research was conducted by both CEO’s on the other business before the merger? Why was this important?
2. What management strengths and business process expertise did the companies demonstrate that helped make the merger successful?
3. What role did the vision statement play in the success? Why is it important to have a vision statement?
4. Compare the successful merger to one of the unsuccessful mergers you found. What three actions did Sage and State of the Art do that the unsuccessful merger did not do or did not do well?
3. Make sure to include at least 3 outside resources, one of which may be your text, to justify your suggestions. Your report should be professional and directed toward middle management