The answer is, be disciplined in decision making, and focus on the critical decisions that make or break the deal:
Resolving those crucial
deal issues is not a matter of following a step-by-step
checklist or crunching the latest valuation formulas. In
fact, focusing on technical razzle-dazzle or
inch-by-inch integration techniques can actually
distract deal makers from the big picture. Rather,
decision-making success comes from practicing four key
- How should you pick your targets?
- Which deals should you close?
- Where do you really need to integrate?
- What should you do when the
deal goes off track?
- Invest with a thesis.
- Ask and answer the big questions in due diligence.
- Integrate quickly where it matters.
- Expect the unexpected.
But one great deal rarely serves as a foundation for sustained shareholder value. To be consistently successful, you have to organize and institutionalize your M&A functions to create discipline around the four deal decisions.
Deal success is not random. By bringing rigor to a
handful of key decisions, over time, you will master the
merger. And you will accomplish more than that. You will
wield one of the most powerful corporate tools and gain
control of your organization's fortunes. And that is the
true promise and potential of mastering the merger.