Sid Dhar AcquisitionsAkzo NobelBMW Roverfailurehostile bidImperial ChemicalsmanagementMergerssuccesstakeover Mergers and acquisitions are a major part of the corporate finance world that deals with buying, selling and combining different companies to form larger entities. They are one of the key activities of corporate restructuring and are worth millions of dollars.
Share via Email They would not listen. When BMW bought RoverBritish experts lined up to advise the German carmaker on how to transform the mutt into a pedigree, but their wisdom was reportedly ignored.
All the car manufacturers are squealing about these issues. One senior industry executive said last week: It did not have profits or a strong balance sheet, and had been starved of cash for decades. The over-enthusiastic BMW took a hands-off approach to Rover management initially, but much of the best talent had left the company or been plundered by former owner British Aerospace.
A top team needed to be parachuted in to take control to improve quality, productivity, product strategy and brand value. But it was built on a greenfield site with German management, training, engineering and design, and it makes a proven, BMW-badged product.
Rover was very different, but BMW failed to take a grip. They were trying to leapfrog Daimler-Benz [owner of Mercedes] before it merged with Chrysler, and they thought this was a clever way of doing it. He added that when BMW bought the company, by trumping an offer from Honda, UK observers were flattered that such a prestigious firm was interested.
And a new Mini was not what they needed next.
They should have turned their attention to Longbridge before Cowley, and invested in a new medium-sized car. This was exacerbated when deliveries of the new car were delayed because of quality problems.
Private motorists and businesses buying company cars by the thousand set a lot of store by what a new car will be worth six months or two years later.
The fact that an equivalent Ford or Vauxhall is reckoned to keep at least 10 per cent more of its value than the Rover has depressed sales of the Poor sales across the rest of the range exacerbated the problem.
They messed up the Rover brand. Their intentions were good and they had fondness for the idea of reviving these dead and dying marques such as Rover, Mini, MG, Morris and Riley, and building up volumes to become a major manufacturer.
But it was unrealistic. This would bring a humiliating and very expensive end to a British misadventure by the bumptious Bavarians.BMW's acquisition of Rover from British Aerospace also marks a further step on the road towards a Europe in which the motor industry may be dominated by as few as four giant manufacturers.
Jan 13, · In Commere One, a high-flying internet company filed for bankruptcy after an acquisition failure. The company had many applications running on different platforms and technologies.
The Story of Rover? Why did BMW buy Rover?. BMW made much of the losses that Rover "forced" upon them during their period of stewardship, but it is clear that the German Company also gained a great deal from the ill-fated partnership.
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When BMW bought Rover.