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Good management 'essential for M&A success'

26 January 2010

The quality of management will often determine whether the integration of two businesses succeeds or fails, it has been claimed.

In a letter to the Financial Times this week, David Barnes of law firm Linklaters said that the presence of good management is "critical to success" in the immediate aftermath of mergers and acquisitions (M&A).

Mr Barnes, who is global head of corporate at the company, was responding to recent comments from Richard Lambert, director general of the CBI.

With many business analysts predicting an upturn in aggressive M&A activity as the global economy continues to recover, Mr Lambert warned against hasty deal-making and questioned the true value of many acquisitions.

While welcoming this call for caution, Mr Barnes said that the performance of managers is often the key factor in the success of such deals.

"Strong management is needed to manage all the difficult cultural integration and administrative/operational issues that arise from mergers," he explained.

Categories: Commercial


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