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Byline: Cord Cooper
1 As the economy picks up speed, so will mergers and acquisitions.
During the next six years, we could see some of the biggest mergers in history, according to Graeme Deans, Fritz Kroeger and Stefan Zeisel, business strategists for consulting firm A.T. Kearney and co-authors of "Winning the Merger Endgame."
Kearney conducted a study of 115 mergers worldwide. The results produced the following principles -- food for thought for any firm considering a buyout.
** Create a clear vision and plan. Most acquiring firms skew their vision and strategy to the merger process, not the back end -- when merged companies have to assimilate differences and grow as a unit.
Nearly 80% of the firms surveyed put corporate "fit" ahead of vision. Ensuring a fit only wins the battle, the authors note. Learning to live with each other wins the war.
Fit flows from vision, not the other way around, say Deans, Kroeger and Zeisel.