Overview

This book, reflecting Dr. Jackson's dissertation research and related observations, prepares readers for what to expect regardless of organizational level and ownership during and after an M&A event. Providing the perceptions of management consultants in a Western business culture, the book gives readers examples of behaviors that make for a successful M&A and those that do not. The information will interest those in various industries, including professional and advisory services, M&A, banking, private equity, change management, organizational psychology, and human resources.

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9781665780094

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Reviews

READER VIEWS: Sometimes it seems like there's only one way for a corporate M&A to go right, and a million ways for it to go wrong. There is some truth to this - although 70% to 90% of mergers fail, companies still spend $4 trillion per year on them. Yes, trillion, according to the first citation in this book. The puzzling question is: Why does this behavior continue? When M&A is being discussed, there are many reasons to think it could be a good opportunity. After all, a lot of research has been conducted into the other company's finances, customer base, legal issues, and so forth. After a great deal of hard work by a lot of highly-paid people, the merger is legalized - and then the wheels fall off. Dan Jackson is deeply interested in understanding this and has drawn on the research he conducted for his doctoral dissertation, writing it for the public in Being Acquired: Managing Change and Employee Commitment. It's good stuff. As luck would have it, this reviewer was once part of the small executive team responsible for selling our company, and the issues highlighted in this book really are the ones that will make or break an acquisition. All too often, a big company acquires a smaller one because the smaller one was innovative, growing rapidly, or otherwise performing impressively. But once the merger takes place, the attitude seems to be, ""you are part of us now, so you'll do what we say,"" throwing out the benefits of the smaller company. This is rarely intentional, but this is not a problem that will take care of itself. It requires the buyer to be open, committed, and disciplined to prevent this. (Jackson notes that during his research, 54% of the acquired personnel, selected from multiple M&A events, left within the first year.) This book is less concerned with the specifics of companies' strengths and weaknesses and more with maintaining employee morale throughout the process - what he refers to as their organizational commitment. Some employees feel a strong emotional attachment to their organizations; others may be committed to achieving the organization's goals, regardless of organizational changes. But many employees are only weakly committed and will keep an eye out for other opportunities. The book begins with an explanation of the research methods that informed it. From there, without wasting words, Dan jumps right into what can go wrong and then the correct way to approach them. In clear, accessible prose, Jackson lays out the responsibilities of the buyer's executive leadership, the role of corporate culture, and the importance of proper communication. After all, ""the problem with an M&A transaction is not necessarily the transaction itself, but rather the failure of the employee to feel like an active, informed participant."" Given how understandable and common-sense much of the advice here is, it's amazing how rarely acquiring companies follow the script. If the acquiring company believes that all cultural adjustments need to be made by the acquired company's employees, then maybe it's time to rethink the whole idea.

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