FACT: Between 70% and 80% of merger and acquisition deals are successful, in that they deliver on most of the expectations laid out by the merging companies at the outset, according to Robert F. Bruner, Professor at Darden School of Business at the University of Virginia.

FACT: Between 1998 and 2001, there were 87 M&A deals that lost shareholders $1 billion or more. During these four years, a total of $240 billion was lost as a result of misguided M&A.

THE QUESTION: What is the difference between an 80% success rate and $240 billion in lost value?

THE ANSWER: DUE DILIGENCE

Integrating two companies is an extremely complicated affair. In conducting due diligence, nothing can be left to chance. The companies involved must consider everything from legal issues to taxation issues, from intellectual property positions to real estate portfolios, from pension funding programs to human resource policies, and from accounting practices to potential anti-trust challenges.

On June 12-13, dozens of veterans of mergers and acquisitions will impart their experiences for maximizing odds of achieving success. They will discuss best practices for conducting pre-merger due diligence seven ways from Sunday.

Don’t miss this unique opportunity to discover how your firm can maximize the odds of successfully executing mergers and acquisitions. Learn best practices for conducting due diligence into all of the most important aspects of executing mergers and acquisitions. 

Maximize Your Returns on Due Diligence

Dear Colleague,

A tsunami of mergers and acquisitions is cascading over the landscape of Corporate America. The value of announced M&A deals rose 40% in 2004 to $825 billion and broke the $1 trillion barrier in 2005. Ill-planned mergers and acquisitions can be catastrophic. 
For instance:

• Mattel wrote-down at least $441 million on its acquisition of The Learning Company

• Nearly $200 billion in market value evaporated in the months following the merger of AOL and Time Warner. 

However, mergers and acquisitions have been unfairly condemned. Especially in current times, deals are more carefully constructed. There is more discipline – deals are smaller, premiums are smaller, and acquirers are focusing on their core businesses. According to JPMorgan Chase, 55% of U.S. deals executed in 2005 were paid for with cash, while 22% featured a mix of cash and stock. 

Don’t miss this unique opportunity to discover how your firm can maximize the odds of successfully executing mergers and acquisitions. Learn best practices for conducting due diligence into all of the most important aspects of conducting mergers and acquisitions.

David Wanetick
Managing Director
The Wall Street Transcript & 
IncreMental Advantage
.