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By Christine Gaylican, Opalesque Asia:
Amidst the global financial meltdown, a wave of mergers and acquisitions (M&A) transpired globally with China taking advantage of a sellers’ market and acquiring no less than $9.1bn worth in outbound assets in the last nine months.
A study made by the McKinsey Research Group (Source) brought into fore the critical phase of assessment of post-crisis M&As, no matter how huge the merger was or the pending acquisition may be.
The study reminded managers and investors alike of considerable new risks at hand as new M&As could make the acquiring company stronger or weaker, depending on their innate competitive advantage and leverage in creating more value.
McKinsey further cited the worry that pending deals that were slowed by the global meltdown should be assessed carefully on whether they “could add value and structural attractiveness to their markets.”
“Moreover, boards and management teams, who assess the fundamental attractiveness of their potential acquisitions and disposals solely by growth and returns increase the likelihood that they will enrich only the sellers of the businesses they buy—or the buyers of the businesses they sell,” the study indicated.
Pending M&A deals for 2009
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