Nearly 50% of all corporate mergers since 1990 have destroyed rather than created shareholder value, contends Lexington, Mass.-based Mercer Management Consulting. However, the chances for merger success improve if management can articulate quickly its post-merger vision and execute an ambitious implementation plan, indicates Munich-based vice president Wolfgang Weidner.
More advice: The merger's strategic intent needs to be understood by all stakeholders. The merger partners must be ready to do some rework during the merger process as they better recognize and assimilate each other's capabilities. And management must have its post-merger priorities set so that it can act quickly once the deal is done.