M&As without Integration: the new optimal?

This topic contains 3 replies, has 4 voices, and was last updated by  Pawankumar Sharda 2 days, 22 hours ago.

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #122999

    Ali Ahmed Alshehri
    Participant

    Are there cases where even after the merger is complete the acquiring company opts not to integrate with the target?
    Can a company have multiple and redundant product lines and competing brands?

    #123007

    Mirinda Lowe
    Participant

    If the merger were a conglomerate merger it would likely not integrate, but would continue to run as a completely separate business. Some tech acquisitions will sometimes remain separate as well, if the culture is substantially different and the objective is the separate platform. Not sure having redundant similar product lines competing would make financial sense, but I’m sure it’s happened.

    #123110

    Wail Selfo
    Participant

    I have seen cases especially with private equity firms, where they acquire a low performing company that has potential with an exit strategy once the acquirer has made their target profit from the deal. In this situation the acquired company still acts independently without any integration.

    #123121

    Pawankumar Sharda
    Participant

    I agree that many PE firms once acquire their potential targets, allow the company to run on its own as an independent company. Only changes if any could be like executive changes like CEO /CFO and replace with the executives who are aligned with the PE board or so. Many times personnel from the PE oversee the initial functioning of the company, make changes to the processes & help to adapt to the new PE owner’s requirements. Later, the company runs as a normal business.

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.

Loading.. Please wait