Post Merger Control

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The fourth Mergers & Acquisitions (M&A) wave is characterized by the extensive use of dept capital to finance merger deals and a very strong orientation on capital markets. During this development stakeholders became very influential and demanding actors with great expectations of high returns and the accomplishment of transactions in an enormous speed. This causes a strong concentration on overestimated synergies and high yields, but lead to an underestimation of functional and sustainable controlling systems, although they play a very important role in reimbursing expenses and capturing integration costs. These shortcomings are the main reason for mergers failure. But for many managers this fact still remains unrecognized and explanations are frequently seen in exogenous, environmental factors. Rather costs caused by coordination, agreement and inflexibility often reach an unpredicted height. Their overwhelming impact on economic and integration success is the explanation why synergies projected for M&A are not achieved in 70-80 percent of the cases. This proves why especially mergers and acquisitions require a higher degree of systematic controlling arrangements than other transactions. The Integration Balanced Scorecard is known as a multidimensional controlling system and includes the relevant factors for mergers, which shows the interdependencies that have the most striking impact on the effective and profitable utilization of supposed synergies and corporate advantages. This paper deals mainly with the Integration Balanced Scorecard as an approach to performance management with controlling and strategic elements by providing a balanced view of the organization and integration process. After this short overview I will additionally present the Integration Dashboard and the 7 C Model, which include critical aspects for Post Merger Control. Focusing on the difficulty of the localization, separation and final definition of ratios they will finally be examined on their strengths and weaknesses concerning their practical use in dynamic and sensitive Merger processes. Seminar paper aus dem Jahr 2009 im Fachbereich Wirtschaft - Industriebetriebslehre, Note: 1,7, Zeppelin University Friedrichshafen, Sprache: Englisch. EAN/ISBN : 9783640637430 Publisher(s): GRIN Verlag Format: ePub/PDF Author(s): Kuta, Karolina


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