Making Mergers, Acquisitions, and Other Business Combinations Work

Making Mergers, Acquisitions, and Other Business Combinations Work

When you look to external partners for acquiring resources and capabilities, your organization needs a practical roadmap to answer some critical questions: What kind of partners and business combinations do we need? How will we manage them over time? What profits will we earn, and will they justify our investment?

  • First law: The combination must have the potential to create more value than the parties can alone. The first law asks these practical questions: How much more value can we create in the market together? What specific resources must we combine to create this value? Identify Potential Joint Value
  • Second law: The combination must be designed and managed to realize the joint value. Which partners and structures fit this goal best? How do we manage the risk and uncertainty inherent in such combinations? Govern the Collaboration
  • Third law: The value earned by the parties must motivate them to contribute to the combination. How do we divide the joint value created? How will value be shared over time? Share the Value Created


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