MAD PM’s
Most of my career had been about Mergers, Acquisitions and
Divestitures (MAD), popularly known as is M&A, for Mergers and Acquisitions.
Framework for project management in M&A environment could be a little
different than PMI framework and it’s important to understand how M&A must
defy some of the core project management rules set by PMI framework. I will get
to the details in a little bit but let me first explain what M&A’s are
about.
What are M&A’s or MAD's?
Mergers, acquisitions or divestiture occurs between two
companies to restructure and reorganize the resources to provide growth of
positive value. The definition and the purpose behind acquisition or
divestiture of a company can be very complex. To simplify, think about it as an
investment by a company in anything. A company invests in new product, because
she thinks there is a value to it and they can generate more revenue (hence
more profit) because they have better grip on the market than acquiree, or Target
Company.
What happens after
the decision has been made?
Once decision has been made to acquire, merge with or divest
a company (here we are talking about large companies or corporations), as a
general rule, consultants are hired to facilitate the transition and
transaction. Consultants leverage their frameworks and best practices to map
different operations between the two companies.
No comments:
Post a Comment