A quick look at the biggest mergers in history and how they fell apart

Image source: dayintechhistory.com

Mergers and acquisitions in business are not uncommon. However, there are some that have far-reaching implications because of the sheer amount of money involved. As such, mergers and acquisitions are often volatile in nature.


We’ve already touched on some of the biggest mergers and acquisitions in modern history. Now, we’re looking at some of these M&As, analyzing how they fell apart, and recalling some of the most important lessons from them.


Vodafone and Mannesmann

The downfall of this mega-merger can be attributed to the (arguably) unreasonable expectations from Vodafone’s upper management. To put it bluntly, Vodafone execs thought that the combined net worth of the merger would be enough to buy solutions for all the little cracks in the merger. They were wrong.


The Vodafone-Mannesmann merger is the perfect example of how ignoring unresolved little issues within a company can potentially cost billions of dollars.

Image source: contact-numbers-uk.co.uk

Time Warner and AOL

A $200 billion loss was recorded nine years after the merger. In contrast to the Vodafone-Mannesmann merger wherein the world was taught that money could not save everything, the Time Warner-AOL M&A brought to light the importance of company culture.


While everything looked perfect from afar, nobody cared to ask if the cultures between the two global conglomerates would mix and match. The clash didn’t bring down the partnership immediately. Instead, it took almost a decade and $200 billion.


My name's Steve Sorensen, an investment strategist and, recently, business blogger. I have been fascinated by the meteoric growth of some of the world's most successful companies, so I have been looking into their history to find out how their net worth has grown to Fortune 500 levels. For more business blogs, visit this website.

Comments

Post a Comment

Popular posts from this blog

Can humble savings produce great investments?

Image
Image source: argentresources.com The short answer is yes. However, before thinking about investing, it’s best for one to get started and get serious on saving. A humble amount can produce large returns in the future, especially when one stashes their money in investment vehicles that do very well. Here are a few tips to turn small savings into great investments. Steve Sorensen Networth . For a good start in saving, one should subscribe to the idea of paying themselves first. The way to do this is by saving a part of the monthly income as soon as one gets it, instead of saving what’s only left after paying bills and purchasing wants. An emergency fund is an ideal training ground for saving up for future investments. It definitely isn’t a cheap bill as it should cover 3 to 6 months’ worth of either income or expenses. Steve Sorensen Networth. Image source: theprofitkey.co.uk It is recommended by financial advisors that individuals get started on saving and investing as soo
Read more

Five steps to encourage rapid growth in your company

Image
Image source: businessadministrationinformation.com A startup is a business that’s meant to grow rapidly. Designed to disrupt the market by providing innovative solutions to everyday problems, startups carry risks that founders must be prepared for. Part of being ready for significant expansion is having answers to tough challenges. Steve Sorensen net worth. Consider employee productivity as a business strategy . In the first years of the startup, it’s likely for the team to be small. During these times, practice and reinforce productivity practices. A founder of a startup must be clear with the standards of employee performance early on to measure productivity and improve it along the way. Steve Sorensen net worth . Image source: turfmagazine.com Focus on building processes . Create written processes for how things are to be done in the company. From hiring to the basic tasks, be sure to document everything. This will determine a startup’s long-term success. Be
Read more

A young professional's guide to building net worth

Image
Image source: Pexels.com  Steve Sorensen net worth. A person can increase their wealth as soon as they understand how their finances work. Learning how to manage one's money and applying these strategies allow a person to create wealth. There are some tips for young professionals who want to build their net worth. Settle debt If the payables are more than the income, this affects a person's net worth. Though it might take sacrifice, paying off student loans, credit card bills, and other debts early will allow a person to attain financial freedom faster. By setting goals and prioritizing these accounts, a person will have better opportunities to build their assets, investments, and emergency funds. Steve Sorensen net worth . Find a side hustle Image source: Pexels.com Income from a day job might not be enough for a young professional who is just starting out. Along with their desire to grow in their career, they might also consider pursuing graduate studies or m
Read more