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Why Acquisitions Fail
From:
Val Wright -- Global Leadership and Innovation Expert Val Wright -- Global Leadership and Innovation Expert
For Immediate Release:
Dateline: Los Angeles , CA
Monday, November 11, 2019

 

As Fitbit users around the world are reportedly throwing their watches in the trash for fear of what Google will do with their health data, this week’s news reminded me why so many acquisitions fail. 

Having been part of the acquisition team, managed post-acquisition integrations, and decided when to walk away from acquisitions in my corporate days at companies including Microsoft and Amazon, the insights gained allow me to offer advice to my clients on if/when/how they acquire companies. 

There are three crucial acquisition stages where you can easily fail:


1.The decision. 

* Failing to involve the right executives in deciding if the acquisition is a right fit.

* Being unclear if this is a talent, technology, market share, or competitive blocking strategy as a reason for the acquisition. Don’t pretend it is something it is not. 

* Moving at the wrong speed. You have to know when to make the move at the right valuation or it will be like walking away from the roulette table just as your number comes up. 


2.The deal. 

* Failing to be realistic about how long the founders will stay around.

* Being unclear about what happens to customers. Fitbit has a huge problem here. They might have said that they won’t use customer data to target Google adverts, but now Google owns Nest and has all of your home data, adding Google's access to your health data is a step too far for many. 


3.The delivery. 

* This is the biggest failure point, the execution is assumed to happen automatically without the right resources. 

* From deal announcement to six months after a go-live date, there has to be incredible attention applied to customers and employees. Sadly the latter gets the least attention and has the biggest impact. 

If you would like a copy of my Acquisition Success Tips reply yes please here.


Dedicated to growing your business,

Val

P.S. I hope you enjoyed this week's VAL-uable Insights, sign up here to get them in your inbox each Monday morning: http://valwrightconsulting.com/newsletter-sign-up/

  Val Wright is a recognized leadership and organization expert. Working with Xbox, Microsoft, Amazon and LinkedIn, she has spent the last 20 years partnering with executives to accelerate growth and gain market superiority across the the games, technology, retail and e-commerce industries.

She is know for telling leaders what they need to hear, not what they want to hear. Leaders seek her out when they need to accelerate their business results, build organizations, develop leaders and create world-class people strategies. Val is a dynamic speaker who will provoke, inspire and provide immediate value to your audience. She has been quoted in Fast Company, E-commerce times, Yahoo.com, Aol.com, usnews.com, NJ.com, TheNetworkJournal.com and TechNerwsWorld.com.

 
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