Post-merger integration… The list of high-profile mergers that have faltered or failed due to a clash of cultures is long. It’s a serious and common problem — and largely avoidable. When it comes to integration, as one of our clients likes to say, “culture trumps strategy.”
In our research we have found material cultural differences in every one of the mergers and acquisitions we’ve analyzed. That’s 100%. Yet, very few companies perform the same level of due diligence on corporate culture as they do on the more-tangible assets that need to be brought together during the post-merger integration: facilities and capabilities; talent; products in the R&D pipeline; customer, sales and market data; and finances. Read article.
Metric of the month… It wasn’t so long ago that the term “finance” brought to mind large teams of accountants sitting at desks and slogging through spreadsheets day after day. Thank goodness for technological advances that made it possible for finance teams to do so much more in so much less time. Right?
Here’s the surprising truth: While much has changed in the last two decades, very little has changed at all for many companies in terms of the size of the finance function.
Out of 328 finance executives at large companies who completed APQC’s Open Standards Benchmarking assessment as of March 1, 2016, the best-performing 25% of companies spends 0.57% of revenue or less to run their finance operations, including the “biggie” functions such as accounts payable, accounts receivable, general accounting, and performance management. (See figure below.) Not bad at all, and certainly far better than the roughly 2% of revenue that even the most efficient organizations were spending on finance 20 years ago, according to the CFOarchives. Read article.
The settlement with five financial institutions that underwrote the sale of MF Global bonds brings the total recovery for investors to about $234 million.
Culture is often one of the underlying reasons for the deal. Ignoring or changing that culture can destroy the target’s value.
In the last 24 months, less than one fifth of small and midsize companies say they have experienced attacks on their computer networks, CFO finds.
Very little has changed for many companies in terms of the size of the finance function.
Gruppo Campari to pay a 60% premium to the target’s current share price.
January retail sales were revised to a 0.4 drop from the previously reported 0.2% gain.
The CEO of RVPlus claimed that the company had, among other things, a 10-year, $1.8 billion agreement with the Nigerian government.
Mizuho Bank provided banking services for bitcoin exchange Mt. Gox and handled all deposits for U.S. customers.
Looking for financial products? Check out our sponsored content.