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The secrets of successful mergers: dispatches from the front lines

Don de Camara (Don de Camara currently leads Deloitte’s enterprise cost reduction service area. He formerly led Deloitte’s merger integration service line and has extensive experience with acquisition and divestiture strategy, target screening, and integration planning. In addition, he assisted numerous enterprises in redefining their strategies and restructure operations.)
Punit Renjen (Punit Renjen is the primary architect of Deloitte’s mergers & acquisition service line. In December 2003, he reassumed the role of global service line leader. He directs Deloitte’s research into M&A and oversees the development of a methodology for creating value through M&A. He has assisted clients on engagements encompassing the entire M&A lifecycle and led the development of a comprehensive, structured methodology for all phases of M&A activity with an emphasis on merger integration capabilities.)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 1 June 2004

Abstract

Merger activity will continue to gain momentum in 2004 and integration will remain a “hot topic” with senior executives. The authors have distilled the critical success factors underlying integrations that drive shareholder value. These success factors are brought to life through best practice examples, including: (1) synergies that make the merged company better able to increase revenues and gain market share than either company could on its own; (2) the importance of early, detailed planning in conjunction with clean teams, active senior management commitment and an “adopt‐and‐go” attitude; (3) a focus on growing the existing business, companies that apply the 80/20 rule – spend only 20 percent of the time on the merger – don’t lose sight of their business and customers; (4) communicating early and often to customers, employees, partners, investors and the media with a realistic assessment of the facts rather than being overly optimistic; and (5) envisioning the desired culture they are looking to create for the new entity and building the sense of community among employees of both organizations.

Keywords

Citation

de Camara, D. and Renjen, P. (2004), "The secrets of successful mergers: dispatches from the front lines", Journal of Business Strategy, Vol. 25 No. 3, pp. 10-14. https://doi.org/10.1108/02756660410536955

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited