- Review Jack Welch’s article “The Six Deadly Sins of Mergers and Acquisitions”
- Locate and post a link to an article published in the last 5 years in the The Wall Street Journal, or another reputable source, about a merger that did not go as planned.
- Which of these “sins” were committed, what issues arose as a result, and what behaviors could the organization have employed to prevent these errors?
One of the most controversial engagements in the commercial space was the failed merger between Pfizer and Allergan (Cyran, 2016). The union would have been worth $152 billion, a colossal amount that would have changed the fortunes of both companies. Experts in matters appertaining to mergers and acquisition called the deal overpriced and too risky considering the massive resources involved. The deal would have seen the two entities reduce their tax obligations as they could have shifted their base to a country with a more favorable regime. While all the parties were to blame for the deal’s ultimate collapse, Pfizer’s CEO Ian C. Read attracted the most scathing criticism because of timewasting that gave the treasury sufficient time to halt the agreement (Cyran, 2016).