Does this Acquisition Create Customer Value

Nothing illustrates the undervalued role of marketing than what happens during a merger or acquisition.  Unless the new company can create more consumer value than the component parts, it is doomed to fail.  Yet while chief executives may think this is what they are doing, the results often suggest they were deluding themselves.  Mazur examines the motives and thinking behind this unfortunate but all too familiar process.

Laura Mazur

When companies embark on a merger or acquisition, they will almost certainly have carried out sophisticated due diligence on the financial framework of the companies in their sights. But what they tend not to do is go one step further and ask what Vladimir Pucik of the Swiss business school IMD calls the differentiating question: Does the acquisition create customer value? From a customers point of view, does it make sense?