Does M&A always create value?

[pp.panigrahi]

For M&A's many times companies are shortsighted and the earlier global economic upswing or rising tide took a lot of boats higher, but when it crashed they came stumbling down. Now most are revisiting the drawing boards and redesigning their strategies and even hiving off unviable M&As. The most important factor I think is synergy.

 

[abhi44q]

yes m&a always has creative value......two mgmt combine together will prove some think new....

 

[abhi44q]

ths only reason why m&a sucess ovr the world...................

 

[ankit_sooda2002]

its not mba, its m&a merger and acquisitions

 

[ravs85]

i think they do, not in every case but it depends on the companies

 

[safibaig]

It depends a lot on the kind of deal, business strategy, financial inflow as such

 

[subscriptionsxyz]

Brilliant post chaaaaaaaaaaaaap.. very detailed.. and clean.. thanks

 

[deepakraam]

Companies need to resort to inorganic growth either to enter new geographies to new verticals.But the buy must come with proper value and there should be revenue forecast from the acquiring company.Not only the moneray value but also other considerations like Govt support,infrastructure and cultural values must also be considered before going for acquisitions.

 

[grail]

M&A can create value..... they are delicate situations.... when proper care in not taken , they tend to destroy the share holder's value..........so every aspect of the business should be taken into view when going for an M&A...........

 

[torp]

Sucess of M&As are compeletly based on d strategic motives ofcompanies involved in it. Credibility of M&As as a viable source for growth cannot be generalised. It will depend on a number of factors like: 1. companies planning cycle that produces the strategic plan. Inorganic growth activities like acquisitions should be a result of the output of that planning process; rather than hving acquitions determine d companies plannings and strategies.
2. Often management goes too far to acquire another company, ending up paying obscenely high price just to fulfill their egos. no matter what level of synergy is percieved to be created, there should always be a upper ceiling decided before entering into negotiations;
3. Very often its been seen that managements enter into M&As without any concrete synergy being created; just to enhance the capitalization and turnover figures........killer of shareholders value and pure gain for top officials in cash and ego fulfillment
4. evn some genuine M&As fail due to a no. of reasons like cultural missmatch; lack of swiftness in d integration process; other concrete road blocks.................

 

[TANNS]

Re: Does M&A always create value?

not always sometimes it creates proble for the management

 

[nirmal7713]

not always
recent deals shows they r failure!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!