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Dallas Business Lawyer Discusses Examples of Successful Mergers & Acquisitions

Dallas business law attorney, Richard “Ric” Armstrong, explores M&A success stories and what your Dallas business can learn from them.

The business practice of Mergers and Acquisitions (M&A) can be complicated at best, and devastating at worst. A truly successful merger requires careful planning and analysis, sometimes preparing as much as two years in advance of the bid to ensure both companies can truly complement one another. Let’s look at a couple of successful M&A cases in recent years and explore some takeaways.

Proctor & Gamble-Gillette

In 2005, P&G successfully acquired Gillette with the intent of integrating Gillette’s best processes into their business, thus shoring up the weak spots of each entity as they became one company. After a hefty amount of research and analysis, they adopted a slow-and-steady strategy of forming about 100 integration teams, allowing for gradual changes as Gillette employees adapted to new performance standards, and making talent retention a priority—even to the point of replacing some P&G employees with Gillette employees with better outcomes. The result: P&G met its financial goals with the acquisition within a year while retaining 90 percent of Gillette’s top managers, according to Aperian Global.

Takeaways: This acquisition shines as a success due to P&G’s extensive research, as well as their approach of taking things slow and valuing and integrating Gillette’s processes rather than overrunning them. This approach kept key Gillette talent on board through the merger so both companies could benefit from the acquisition.

Adidas-Reebok

Not long after Adidas-Salomon AGA acquired Reebok North America at a 34 percent premium over last closing price (a total of $3.78 billion), Adidas became a dominating force in the athletic wear market. Within a year of the 2006 acquisition, according to Wall Street Mojo, revenues had increased by 52 percent, and Adidas’ market share soon jumped from 8.9 percent to 21 percent, giving Nike a run for their money.

Takeaways: The success of the Adidas-Reebok merger hinged largely on the decision to keep both brands intact, rather than one cannibalizing the other. Adidas essentially recognized both Reebok’s cultural appeal and North American market advantages and chose to capitalize on them instead of dismantling them.

While we realize you may not be looking to acquire, or be acquired by, a Fortune 1000 company–the same principals that apply to large companies mergers work in small company purchases or mergers. Slow and steady wins the race.

Whether you are looking to acquire another company or put your own Dallas company up for sale, you need help from an experienced Dallas business law attorney to ensure you are covered in all legal aspects. Call Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

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Plano, TX 75075

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