Sunday, September 2, 2007

Familiar brand names disappear following an acquisition

Significant changes happening in the way M&A deals are done

The Coke acquisition of Glaceau and the much-publicised Suzlon-Areva battle for acquiring REpower have ensured that the issue of mergers and acquisitions (M&A) remains in the spotlight. Alongside these mega deals, pitchforked into centrestage are issues such as corporate culture conflict, destruction of brand value and industry consolidation.
Speaking to Business Line on these issues and other aspects of the spiralling trend of such mega deals, Mr Gopal Ramanathan, Global Chairman of KPMG's Transaction Services Practice, said that culture issues come into the picture in most trans-national transactions.
"It is certainly one that needs a lot of attention, otherwise the company ends up with a host of problems. Sensitivities to cultural differences tend to get a lot more priority these days because there is increased awareness of the pitfalls of ignoring them."

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