The Art of M&A Integration.

• Author: Needham, James M.
• Position: Review

by Alexandra Reed Lajoux

Published by McGraw-Hill, New York, 439 pages, $49.95

REVIEWED BY JAMES M. NEEDHAM

As I read Alexandra Reed Lajoux's book, I could not help but think of how wise was the selection of the word "Art" in the title. For how else does one approach dealing with the vagaries of the human psyche? Surely no 10 or 20 rules could be devised to cover the range of human behavior or responses that we associate with a new set of circumstances. I can think of a few classic situations of change. How about a change to one's source of income? Or, "Hi! I'm from the head office and I am here to help you." Or, "My wonderful children! Meet the woman who is going to be my new wife and her children who will be moving in with us." Do any of us believe that a handbook can be devised to assuage the basic human instincts of apprehension, insecurity, fear, and resistance to change? What does this mean in a merger or acquisition?

Lajoux, the former editor of Mergers & Acquisitions magazine, approaches the task by providing a list of questions and situations that many of us think about, or should think about, when contemplating an acquisition. She produces case histories and circumstances which occur frequently in acquisitions. While one may disagree with some of her solutions or answers, we are dealing with an art, and, like all art, an educated experience and awareness is essential for the artist and also for the art critic.

This is the primary benefit that I see in the book. It helps sensitize the reader to the complexities and downside of integration, and sensitivity to potential problems is what a leader must master. If you are overwhelmed by the myriad pitfalls and opportunities which may occur in the acquisition process, fear not. The author also draws upon an impressive roster of experts (whom you may contact) who provide the experience, wisdom, and specific examples which are invaluable in making the book a useful handbook and checklist rather than just an academic treatise.

Having spent a career dealing with the managers and owners of public and private companies and owner-managed companies, I have found this continuing validation: The basic instincts of human nature still hold true - self-interest rules. How does this transaction affect me? Conflicting self-interest among the owners and leadership of merging companies compounded by the same conflicting self-interest among employees, customers, and suppliers invites chaos amidst change...