ビジネス英会話：M&Aの失敗

M&Aの失敗事例に学び、どういったM&Aならば成功するのか？企業の経営幹部や、M&Aコンサルタントを目指すならば、学んでおきましょう。

◆英単語、表現
US FDA : アメリカ食品医薬品局

A: Have you read about Toshiba's M&A failure with Westinghouse?

B: Yes, I have. It's an example of how the performance of the seller deteriorated significantly after the M&A was completed.

A: Exactly. The business plan was carefully examined, but due to changes in the external environment, the company's business performance deteriorated rapidly, causing sales to be much lower than initially expected.

B: That's why it's important to take into account the external environment and trends during the due diligence process, isn't it?

A: Absolutely. Another example of a failed M&A is Marubeni's acquisition of Gavilon. They underestimated the country risk and were unable to demonstrate the effects of the acquisition, which resulted in a goodwill loss of approximately 50 billion yen.

B: Yes, companies expanding overseas should be aware of the risks involved and carefully examine the global industry environment and external trends to avoid failure.

A: Speaking of due diligence, Daiichi Sankyo's acquisition of Indian generic drug maker Ranbaxy failed due to insufficient due diligence, resulting in the inability to avoid trouble.

B: That's right. During the TOB period, the US FDA stated that problems related to the handling of antibiotics, manufacturing equipment, production management, and quality control had not been improved, which led to a stock price fall and an extraordinary loss.

A: Timing is also crucial in investment, as seen in Walmart's investment in Seiyu. The investment was made when Seiyu was suffering from poor business performance, and even after making it a wholly-owned subsidiary, the performance did not improve.

B: Exactly. The wrong timing of investment can lead to a failure in M&A. The same happened with Microsoft's acquisition of Nokia's device business, where they were unable to catch up with their smartphone business even after the acquisition.

A: Fujitsu's M&A failure is also a result of a deterioration in business performance, and it's important to continually monitor and evaluate the performance of the acquired company.

B: Yes, and to have a proper post-merger integration plan in place to ensure a smooth transition and maximize the benefits of the acquisition.