Empirical research shows that two thirds - some claim even four fifths -
of all acquisitions fail. Bad acquisitions can spell disaster for a
company, but if successful, they can lead to healthy growth, enhanced
competitiveness and a world market position. Despite the vast amount of
academic and practical research on M&A, there are still no adequate
theories to explain this continued trend of failure. In fact, although
success factors have been broadly researched and are well known, most
work still concentrates on them without concomitantly touching upon the
necessary governance structure which enables their effective deployment.
This is crucial. In order to determine what constitutes an effective
board and governance structure, extensive qualitative fieldwork was
carried out through discussions with some of the most renowned
international CEOs and Chairmen. From this, two in-depth analyses of
prominent cases are made, one of extraordinary success and the other of
integral failure. The business leaders' management approaches are
scrutinised, revealing significant differences between what worked and
what did not, and recommendations are derived for improved corporate
governance. The author's conclusions sharply illustrate the limits and
challenge the inadequacies of current business practice, revealing gaps
between mainstream theory and the reality of the boardroom. Due to his
innovative approach, the study is praised by practitioners for
itsadditions to strategic management understanding and its provision of
effective tools for boards and managers.
