Capitalize on Merger Chaos
Six Ways to Profit from Your Competitors' Consolidation and Your Own
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- $26.99
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- $26.99
Publisher Description
Merger mania is at an all-time peak. Yet up to 80 percent of mergers fail because of culture clashes, mismanagement, and the chaos that ensues. Taking this failure rate into account, merger experts Thomas M. Grubb and Robert B. Lamb have written the first book that arms managers with strategies to exploit the many growth and profit opportunities created when competitors are coping with merger chaos. Grubb and Lamb show why firms miss huge financial opportunities when they stay passive while their competitors struggle in merger chaos. They present a fast-paced primer for action when your corporate rivals merge, based on six strategies:
• Attack your competitors when they are distracted by their mergers' turmoil and confusion. • Create a "magnet strategy" to attract and hire your merging competitors' best people while their companies are in a state of merger shock. • Use the threat to your firm's survival caused by giant competitors' mergers in order to jump-start your own internal change. • Use multiple alliances, networks, licensing, franchising, or joint ventures -- instead of mergers -- to fuel explosive growth. • Plan and execute your firm's fast-track mergers and acquisitions. • Create a composite strategy by using two or more of the above strategies simultaneously to maximize your growth and profitability.
The authors analyze winning strategies at AOL, General Electric, Dell, Ford, Cisco Systems, and Vodaphone as well as failures at Coca Cola, Boeing, Union Pacific, Compaq, and Sunbeam. The result is "must" reading for operating managers at all levels, investment bankers, and mergers and acquisition specialists.
PUBLISHERS WEEKLY
Although short on "how-to," and even shorter on firsthand accounts of success, this book describes six ways a company can benefit from consolidation within an industry. Consultant Grubb and New York University business school professor Lamb correctly point out that most mergers fail to generate a positive return to the shareholders of the merging companies. Thus, they argue, mergers present wonderful opportunities for competing firms to steal employees from the combined enterprise, to attack the marketplace while their competitors are focusing on joining forces, to jump-start internal change , to form joint ventures or strategic alliances with companies unaffected by the merger, to plan their own merger correctly and to rethink an entire business strategy in light of the competition. However, this slight book effectively raises more questions than it answers. For example, while good people are likely to quit or be downsized when companies join forces, how exactly does one attract them? Interviews with CEOs or senior executives who have followed the authors' strategies would have helped enormously. Instead, the authors rely heavily on secondhand sources, such as newspaper and magazine pieces, resulting in a book that serves as a useful checklist but offers little help beyond that.
