Acquisitions Happen; Mergers Are What Employees Think Happen

John Taylor, VP Research at the National Venture Capital Association was in Dallas on Tuesday to speak to the Southwest Venture Forum with an update for 2008.

It wasn’t the update on VC activity that was the most interesting to me, however. It was when discussing Mergers and Acquisitions activity for 2007 that Mr. Taylor said something I found to be totally true and yet something no one ever discusses.

He asked the audience “when was the last time you heard of a merger?”

His point was that it is almost always one company acquiring the other, often it is not “happy” as he said, but forced, and that employees are almost always told it’s a “merger.”

He said, in fact, that he only uses the term “M&A” when he doesn’t have enough room on a PowerPoint slide for the word “Acquisitions”.

Food for thought.


About Lincoln Murphy

I am a Customer Success Consultant focused on Customer Success-driven Growth. I wrote the Customer Success book which you can buy at Amazon. If you need help applying Customer Success-driven Growth principles in your company or would like me to speak at your event, please contact me. Also, connect with me on LinkedIn or follow me on Twitter or Facebook.