Research into M&A success & failure rates by VSC Growth

1. Mergers & Acquisitions: Part 1 2011 Research Project - Highlights Steve Coote Director, VSC Growth Feb 2011 www.vscgrowth.com.au Copyright © 2011. All Rights Reserved. VSC Growth

3. More than 70 technical papers reviewed from researchersand academics across the globe

4. Papers review of hundreds of M&As from North and South America, Europe, UK and Australia over a 30 year period.

5. Includes surveys and guidance to clients from the big global M&A practitioners The Research

6. The Research - Diversity of opinions … “Merger Paradox: The Strategic Role of Minority in Integration process” “The Murder in Merger …Struggle Between Life & Death Impulses” Cost of “Culture Clash” The role of National Culture in Mergers & Acquisitions 2nd wave post-merger integration Soft Keys and Hard Keys to Success “Avoiding the Synergy Trap” “Managing the Strategic Dynamic of Acquisition Integration: Lessons from HP and Compaq” Thirty Years of Mergers and Acquisitions Research: Nothing Has Changed “Delivering the promise” “Corporations as stepfamilies” These are indicative themes and extracts from the papers reviewed. References available on request.

8. There are approaches that if applied will improve the likelihood of successThe Research

9. 1/3 Destroy Value 1/3 Maintain Value 1/3 Create Value “70% CEOs believe their M&A’s were successful” The Research… the truth in the myths Value Created “Only 30% are successful” Value Maintained “50% Destroy Value” Value Destroyed “70% Fail to achieve expectations” Copyright © 2011. All Rights Reserved. VSC Growth

11. Review date 2005

12. 150,000 staff

14. Processes established

16. Insufficient review & feedback

17. Insufficient management “bandwidth”

18. Failed to execute to completionSource Burgelman & McKinney 2006

20. If we want to improve our approach, what are the fundamental things we need to?

23. 7 years as a Business & Division Manager developing growth opportunities

24. 5 years as General Manager Group Operations of listed global infrastructure services company

25. Since 2009, consulting to business on strategy, performance and leadership

26. Due diligence &integration >20 mergers in Australia, United States, United Kingdom & New Zealand

27. Involved in deals with acquiring company sizes 200 to 3100 and acquired company sizes 10 to 450

28. Ready to help your business improve M&A outcomesSteve Coote BE (Hons), MAICD, MAIM

29. Want a closer look at the research? The full results of the research are presented in our: Mergers & Acquisitions Part 1 – 2011 Research Project The research has been combined with our direct experience to provide practical guidance to those involved in M&A Contact Steve Coote on +61 412 148428 or steve.coote@vscgrowth.com.au www.vscgrowth.com.au