JOHNSON ON DISTRIBUTION MANAGEMENT: Why 80% Of All Acquisitions Fail
Five rules to improve your chances.
As evidenced by the results of the merger mania of the '90s, many industry experts believe, as was the case in the previous decade, that as many as 80% of acquisitions do not succeed, resulting in billions of dollars invested in failure. Because the majority of acquisitions do not meet the original goals and objectives of the acquirers or other conditions change, some 40% of all businesses acquired will again be sold off within three to five years, according to available statistics.
The “Missing Link” in the corporate structure is the professional transition manager. This is the experienced person who understands the strategic goals, has the resources to gather the necessary factual data about the acquired company, and also has the know-how and track record to deal quickly and effectively with the complex issues of transition management.