Consolidation in the Utility Industry

Published By Capgemini

• Published December 2006
• 8 Page(s)

Most people would never consider merging onto a crowded highway without an on-ramp, but many CEOs are doing precisely that when they enter the Merger and Acquisition (M&A) process. Studies show that 50 to 80 percent of all M&As fail to deliver the value promised because executives are not looking at the oncoming traffic of a newly merged company. This results in decreased or flat profitability for the new company — most evident when year-end cash balances fall short of anticipated synergy savings.