Tuesday 14 June 2016

People stuff

Paying attention to people in mergers & acquisitions 
Pic from sdtimes.com


The global value of merger and acquisitions deals in 2015 reached a record £3.3 trillion, a 42% up on the previous year  with cross-border deals coming in at £ 1.1 trillion.

We are in an environment of very low interest rates and companies are chasing opportunities that will offer returns better than zero. Some companies have been using international mergers and acquisitions (M&A) for tax avoidance/reduction by re-establishing their headquarters in the overseas location of an acquisition or buying technology as an alternative to investing in risky research & development.

Pic from doerencapital.com
The most valuable asset in any company is its people ( it is difficult to find good people and expensive to hire and train them).
A M&A strategy needs to consider who are the critical people that needs to stay in the transaction and what they need.
Time pressure sometime lead to the wrong decision being made about people with the pressure of making cost saving quickly.

Culture, management, leadership and cross-border or multinational move need to be considered to achieve a successful M&A transaction and a single company culture.


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