Mergers and Acquisitions - The Simple Solution

As many of you know, I worked there for many years and have recently moved on to start my own business.  With all the exciting time for me, I did have the opportunity to do some research about mergers and acquisitions in our Reverse Logistics (aftermarket) industry.  I found that there have been many merger and acquisition over the past five years alone.  Yes, there are some companies that have fallen by the way sideand others that linger in a small scale trying to get the next big order, but there have been hundreds of these M&A deals over these last few years.  The thing that struck me the most while doing this research was that the value of the M&A deals, the true purpose was eventually left to the way side and he company hat acquired the new entity became dominate and let their dominance become the true picture of the company of the future. What I mean is, when company A buys company B, they did it to enhance service offerings, to bring in a newer customer base and to add revenue to the bottom line.  Three years later, when you look at that Merger, you see that company A is still company A and everything that company B was bought for has not disappeared.  You see, when these deals happen, the Apple is buying the Orange for a good reason.  The Apple wants to enhance their service offering, become a bigger player in the industry and have the ability to serve the customer base with a broad range of services, locations and technology.  Two years later, you see the larger footprint, but you have lost the technology, it was too much to integrate.  You lost the customer base, you did not really ant to service them with the new technology, service offerings an footprint.  You have lost the new service offerings, it was unmanageable, we did not know what we were getting into.  So why M&A.  It is not so simple, but yet it is.  Finding the right group of companies to feed off each other should be a dating game first. Test the waters, learn each other and what the value is.  See what personell internally will have value.  Look at the big picture and the long-term.   This is the start of a successful M&A program

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