Delivering Merger Synergy

After a quiet period of several years, optical fusion and acquisition (M&A) activity has gained momentum across many constancy sectors in 2005. The interest in M&A activity never, of course, disappearedâ€"and with dandy reason. Accenture question shows that high performance businesses pursue growth strategies that catch the shortterm priorities of today and the organizational and competitive demands of tomorrow. For many companies, M&As have an strategic role in the pursuit of that balance. However, realizing the full synergy likely in a merger is an uphill battle. Some studies have noted that to the full half of all mergers eventually fail to create shareholder value, and slight than 30 percent create value that is noticeably higher than industry average returns. Certainly, there can be many reasons wherefore deals have not lived up to expectations. In Accentures experience, one of the roughly critical reasons is that the companies involved typically did not pay enough trouble to run chain issues across the boardâ€"whether it was during the pre-deal M&A schema process or during the actual merger planning and subsequent integration.

The enormousness of supply chain to a mergers success is back up by the findings of an international study team made up of researchers from Accenture, INSEAD and Stanford University, which was part of Accentures High Performance Business research initiative. The research team found that supply chain excellence is directly tied to a companys financial performance, which is why top performers curb supply chain precaution into their business strategies.1 Overall results bolster Accentures hypothesis that the mastery of core competencies like supply chain management is a critical component of high performance. The emergence of the supply chain While not applicable for deals that are focused solely on access to a new technology (such as those in the high-tech and biotechnology industries), supply chain... If you want to get a full essay, order it on our website: Orderessay

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