Case Studies

This chapter compiles four illustrative case studies of key elements and common failings of the M&A process, most of which jeopardise the intended outcome. The cases focus on the narrative and process with background material deliberately excluded to encourage personal reflections on the situations presented. The first case follows the circumstances surrounding the acquisition of Rawlplug by a UK FTSE 100 construction materials manufacturer. The case demonstrates strategic failings, how external due diligence might have identified those failings and a notable lack of price negotiation. Elon Musk’s controversial approach and purchase of social media firm Twitter explores themes of timing, pricing, strategy and planning in what became a failed improvement plan. The last two cases concern private equity purchases, the first being the UK supermarket chains Asda and Morrisons. Comparing and contrasting these deals identifies major risks which private equity exposed itself to when entering a bidding war for publicly listed Morrisons compared to the previous exclusive deal for Walmart’s Asda business. The second private equity case covers the purchase of Swiss automotive components manufacturer Garrett Motion in the USA (also introduced in Chapter 10 ). It demonstrates the consequences of acquiring a prominent supplier in a declining industry and invites consideration as to which strategic approaches are appropriate for transient and turbulent markets.