As per Harvard Business Review Articles, The BigIdea: The New M&A Playbook and M&A: The One Thing You Needto Get Right, - “M&A is a mug’s game: Typically 70% - 90% ofacquisitions are abysmal failuresâ€. You have been tasked by theBoard of Directors of Commerce Bank (Regional Bank located in NJ,NY, PA) to explore expansion opportunities in Florida via anacquisition. Commerce’s mission is to be America’s Most ConvenientBank. The CEO of Commerce has already found a target Bank inFlorida, about ½ the size of Commerce, as a candidate foracquisition and wants to proceed.
The Board is asking you to lead the Due Diligence Teamto answer the following questions knowing that 70% to 90% ofacquisitions do not meet their intended goals.
Will this acquisition boost currentperformance?
Will this acquisition lower or increasecosts?
What is the right price to pay?
How would you avoid integration mistakes?
What other qualitative and quantitative informationwould you need to make your recommendation?
How would you present this information to theBoard?
