The Reality of M&A Governance

This book exposes and provocatively illustrates the limits of current corporate governance and organisational structures to cope with new challenges regarding changes in acquisitions. It offers best practice recommendations for boards and top management.

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.

Best practice recommendations for boards and top management allowing the establishment of effective governance structures The experience and views of some of the world's most renowned CEOs and Charmen including unique company documents illustrating the reality of board-management communications in a highly successful company Farschtschian exposes and provocatively illustrates the limits of current corporate governance and organisational structures to cope with new challenges regarding changes in acquisitions Includes supplementary material: sn.pub/extras

Autorentext
Dr. Farsam Farschtschian is an Investment Advisor at Morgan Stanley in London. He studied at the Universities of Geneva and Berkeley and has a PhD in Business Administration from the University of St.Gallen, Switzerland. He is also a Research Associate at its IFPM Centre for Corporate Governance. He first published his empirical findings in his book "The Secret of Successful Acquisitions: Abandoning the Myth of Board Influence.

Inhalt
Conceptual Part.- Research Methodology.- Empirical Part.- Analysis of Results.- Best Practice Recommendations for Boards.- Outlook and Conclusion.