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THE
ONE
THING
YOU
NEED
TOROGER
GET
By:
L.
MARTIN
RIGHT
BY: IVANI
KATAL
FAILURES
2015
MS wrote off
96%
of value of handset
billion
7.9
2012
$12.5 billion
2012
$8.8 billion of
its $11.1 billion Autonomy acquisition
HP has written down
2011
$35 million
million
$580
SUCCESSES
1997
2005
951-1996
Berkshire Hathaways
cornerstone
These are
just
exceptions:
Typically 70%
90% of
acquisitions
are abysmal
failures.
WHY?
WHAT REALLY
HAPPENS
take
mode.
phone
smart
hardware
data analytics
enterprise search
networking
social
and
by being a
smart
provider
of
growth
capital
by
providing
better
managerial
oversight
by
transferring
valuable
skills
by sharing
valuable
capabilities
inthe
economies.
pursuit of scale
strategic
direction, organization, and
process disciplines.
target]
withbetter
Super
Super successful,
successful, high-end,
high-end, Europe-based
Europe-based
Daimler-Benz
Daimler-Benz thought
thought itit could
could bring
bring much
much better
better
general
general management
management to
to modestly
modestly successful,
successful,
midmarket,
U.S.-based
Chrysler
and
learned
a
midmarket, U.S.-based Chrysler and learned a
painful
painful$36
$36 billion
billion lesson
lesson
EVOLVES
TRIBUTE AROUND:
SUCCESS TO:
4PSPEOPLE
ANAHER BUSINESS SYSTE
PLAN
PROCESS
PERFORMANCE
DANAHER
DANAHER
Since
Since its
its inception,
inception, inin 1984,
1984, itit has
has made
made more
more than
than
400
acquisitions
and
has
grown
to
a
$21
billion
400 acquisitions and has grown to a $21 billion
company
with
a
market
capitalization
above
$60
billion
company with a market capitalization above $60 billion
skill,
asset, or
capability to it directly, possibly through
the
redeployment of specific
personnel.
and
and transferring
transferring the
the skills
skills for
for running
running aa direct
direct
store
logistics systema key to competitive
storedelivery
delivery(DSD)
(DSD) logistics systema key to competitive
success in the snack category.
success in the snack category.
than
transfer
skills
as
billion.
N
O
It
could
have
combined
WhatsApp
and its own application,
Messenger, but it has
kept them completely
separate.
3 KEY TAKEAWAYS
THE PROBLEM
Although M&As are a tempting
strategy for fast growthand
psychologically gratifying
for CEOsmost of them are
extremely expensive mistakes.
THANK YOU