The Synergy Trap, Asia-Pacific Edition
Mark L. Sirower
- "Every
- CEO
- and
- Corporate
- Director
- who
- has
- been
- in
- the
- path
- of
- the
- 'WOW!
- GRAB
- IT!'
- acquisition
- locomotive
- should
- read
- this
- book!"--
- Charles
- R.
- Shoemate,Chairman
- and
- CEO,
- BestfoodsWith
- global
- acquisition
- activity
- running
- into
- the
- trillions
- of
- dollars,
- the
- acquisition
- alternative
- continues
- to
- be
- the
- favorite
- corporate
- growth
- strategy
- of
- this
- generation's
- executives.
- Unfortunately,
- creating
- shareholder
- value
- remains
- the
- most
- elusive
- outcome
- of
- these
- corporate
- strategies.
- After
- decades
- of
- research
- and
- billions
- of
- dollars
- paid
- in
- advisory
- fees,
- why
- do
- these
- major
- decisions
- continue
- to
- destroy
- value?Building
- on
- his
- groundbreaking
- research
- first
- cited
- in
- Business
- Week,
- Mark
- L.
- Sirower
- explains
- how
- companies
- often
- pay
- too
- much
- --
- and
- predictably
- never
- realize
- the
- promises
- of
- increased
- performance
- and
- competitiveness
- --
- in
- their
- quest
- to
- acquire
- other
- companies.
- Armed
- with
- extensive
- evidence,
- Sirower
- destroys
- the
- popular
- notion
- that
- the
- acquisition
- premium
- represents
- potential
- value.
- He
- provides
- the
- first
- formal
- and
- functional
- definition
- for
- synergy
- --
- the
- specific
- increases
- in
- performance
- beyond
- those
- already
- expected
- for
- companies
- to
- achieve
- independently.
- Sirower's
- refreshing
- nuts-and-bolts
- analysis
- of
- the
- fundamentals
- behind
- acquisition
- performance
- cuts
- sharply
- through
- the
- existing
- folklore
- surrounding
- failed
- acquisitions,
- such
- as
- lack
- of
- "strategic
- fit"
- or
- corporate
- culture
- problems,
- and
- gives
- managers
- the
- tools
- to
- avoid
- predictable
- losses
- in
- acquisition
- decisions.Using
- several
- detailed
- examples
- of
- recent
- major
- acquisitions
- and
- through
- his
- masterful
- integration
- and
- extension
- of
- techniques
- from
- finance
- and
- business
- strategy,
- Sirower
- reveals:The
- unique
- business
- gamble
- that
- acquisitions
- representThe
- managerial
- challenges
- already
- embedded
- in
- current
- stock
- pricesThe
- competitive
- conditions
- that
- must
- be
- met
- and
- the
- organizational
- cornerstones
- that
- must
- be
- in
- place
- for
- any
- possibility
- of
- synergyThe
- precise
- Required
- Performance
- Improvements
- (RPIs)
- implicitly
- embedded
- in
- acquisition
- premiums
- and
- the
- reasons
- why
- these
- RPIs
- normally
- dwarf
- realistic
- performance
- gainsThe
- seductiveness
- and
- danger
- of
- sophisticated
- valuation
- models
- so
- often
- used
- by
- advisorsThe
- Synergy
- Trap
- is
- the
- first
- expose
- of
- its
- kind
- to
- prove
- that
- the
- tendency
- of
- managers
- to
- succumb
- to
- the
- "up
- the
- ante"
- philosophy
- in
- acquisitions
- often
- leads
- to
- disastrous
- ends
- for
- their
- shareholders.
- Sirower
- shows
- that
- companies
- must
- meticulously
- plan
- --
- and
- account
- for
- huge
- uncertainties
- --
- before
- deciding
- to
- enter
- the
- acquisition
- game.
- To
- date,
- Sirower's
- work
- is
- the
- most
- comprehensive
- and
- rigorous,
- yet
- practical,
- analysis
- of
- the
- drivers
- of
- acquisition
- performance.
- This
- definitive
- book
- will
- become
- required
- reading
- for
- managers,
- corporate
- directors,
- consultants,
- investors,
- bankers,
- and
- academics
- involved
- in
- the
- mergers
- and
- acquisitions arena.
