Despite studies showing that mergers and acquisitions rarely provide significant value for the shareholders, there is no sign of slowing trends M & A. One of the main reasons why M & rule to fail, the authors say, is that the process often puts extreme stress on the senior management teams. By its nature, this process is an adversarial one, with management on both sides in favor of its stakeholders. When the dust settles at the end of the process, it remains, as the authors say, "navigate the difficult transition from a tough negotiator" trusted colleagues. " The authors draw on the Hewlett-Packard, Cisco, General Electric and Adobe offer six principles for improving relations between the senior management of both sides of M & equation. The first three guidelines should be adopted as soon as possible in the process of integration. The authors advise that you can reduce the flight of talent by reducing the role of uncertainty as quickly as possible. They also call on the due diligence of the talent you get, as early in the process, perhaps, preferably before the deal is completed. Third, they recommend allowing some "habits die hard." Employees often rely on old habits and procedures are comfortable, and many of them, which made the company successful in the first place. During the integration proceeds, there are three important principles to follow. First, buyers do not have to endure the "bad behavior" that can sabotage the process of integration. Secondly, it is important to have patience with the new management team, as many of them will be in an unfamiliar role. Finally, The authors suggest that it is important to remember to celebrate the value of the deal for all involved. According trumpeting the importance of the new team, you can increase communication and trust. Ultimately, this trust can lead to increased shareholder value for all participants. "Hide
by Stephen A. Miles, Nathan Bennett Source: MIT Sloan Management Review 7 pages. Publication date: 01 Oct 2008. Prod. #: SMR295-PDF-ENG
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