This post is by Scott Moeller from Intelligent Mergers
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There’s been a lot of press reaction to our recent report on what happens when a new CEO takes over: ‘Here’s the deal: move fast as a new CEO’. The report was written by Cass Business School and the M&A Research Centre (MARC) (which I head). See also my blog entry ‘What comes next? Change your CEO and (bang!) you’re acquiring another company‘ and another one regarding the intial coverage by Stefan Stern, the ‘On Management’ columnist, in the Financial Times and in the blog entry ‘Article on CEOs and M&A deals‘. Clearly good use of business intelligence when a board is appointing a new CEO!
The Wall Street Journal has written on this topic as well: ‘Why Your New CEO Should Be a Deal Maker’, which emphasises that the firms of CEOs who do deals in their first year in office outperform those who do not do a deal in their first year. The Wall Street Journal has also put together a video interview on this, tieing it to the recent Prudential deal to purchase the Asian assets of AIG … a deal which was recently pulled. See the interview here: ‘Bankers: New CEO Means New M&A. Make That Call Now!‘ and another related article with the same video here:
‘New CEOs Have an Urge to Merge’.