Successful Mergers in the Media Industry

by

The crisis is fostering consolidations in the media industry. Operations of concentration help to reduce costs and allow to better face the increasing number of competitors. But, according to most analists, more than 70% of mergers do not add value for shareholders.

We provide some suggestions for developping successful mergers and acquisitions:

– Prepare a good analysis. Be a bit sceptical about the synergies that you will create.

– Forget the “big words” -credibility, diversification of risks, internationalization…- and look at the real data: income, costs, debt, profit margins.

– Write the plan for “the day after”: tasks, deadlines, people in charge of each goal…

– Look at the intangible benefits you will get: new knowledge and new competences, more talent and creativity, more valuable brands…

– Do not overestimate the benefits of size and economies of scale. Do not forget the risks of burocracy and lack of focus.

– Try to armonize the two organizations’ cultures fostering internal dialogue.

– Pay attention to the little details of implementation.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: