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Opinions and views from expert CFOZone members.

Tag >> acquistion
Oct 20
2009

Lehman failure shows CEOs shouldn't be dealmakers

Posted by Ron F in Risk, M&A;, DealsC-level executivesacquistion

Ron F

This take on the Lehman saga, as reported by Andrew Ross Sorkin, has implications for other dealmakers, and not just those out to keep their companies from failing.

According to Sorkin, Lehman CEO Dick Fuld ignored the nation's top banking lawyer when trying to do deals that would save the investment bank, choosing instead to negotiate an acquisition or investment himself.

Oct 12
2009

A Good Time for M&A;, but How Do You Guarantee Making a Good Deal?

Posted by PaulaColbert in talent managementtalent assessmentsynergiesrisk assessmentorganizational designorganizationmergerkeirseyintegration plandue diligencecultureassessmentacquistion

PaulaColbert

One of the benefits of an economy like the one we are experiencing, is the opportunities it creates. For companies with strong balance sheets and lots of cash, this could mean the opportunity to buy a competitor, or create JV's to build market share and revenue.  But, as with anything in business, there are risks, and the key to paying the right price and getting the right ROI is not a numbers game. Rather, it is driven completely by the people in the organization and the leadership that drives the strategy. In a study by KPMG (Unlocking Shareholder Value: The Keys to Success, November 1999), 83% of mergers were unsuccessful in producing any business benefits with regards to shareholder value

As the VP of Growth for GE Consumer Finance, my team and I were acutely aware of how important a company's culture, leadership and organization structure was to securing a successful deal. My role was to make sure we captured the synergies from a people perspective, outlining the cost of severance, benefits, pension liabilities, and CIC payouts, as well as assessing the leadership team and cultural fit with GE. Of course there was the financial due diligence that our finance team managed, but it was only one input into the equation.  GE had a very rigid 100 day integration plan that was well documented, and required the purchased company to migrate over to our systems and processes almost immediately.





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