HBR (October): About Mergers

Harvard Business Review: This week, I’ll be reviewing the highlights of the October issue of the Harvard Business Review. Worth the read if you’re interested in managing risks in an uncertain economy. Suggest subscribing, especially for senior, strategic teams. Here’s FOURTH in a series of posts:

Mergers That Stick by Rosabeth Moss Kanter

In recovery, mergers look like bargain basement acquisitions, but buyer beware! Without a heavy investment in social integration and motivation, many such mergers will turn out to be costly losses. On the other hand, taking time and money to respect the purchased company, its people and systems can pay off. Example: French-based Publicis bought Saatchi and Saatchi and adopted their (S&S’s) operating system in what is called a “reverse acquisition.”