Do deals deliver? Do we get what we want out of mergers and major purchases?
‘This is not a merger, it is a takeover.’
Ken Morrison to Safeway staff at the start
‘The magic wand did not work quickly enough.’
Ken Morrison on his retirement when the Morrison’s takeover of Safeway finally yielded spectacular profits after a rocky start
Googling up ‘failed mergers’ gets 480,000 results. Googling up ‘successful mergers’ gets 253,000 – two duds for every winner. Going for growth is never easy. In housing it is especially tricky. A housing association group is only as strong as its weakest member. If that fails at inspection, the entire group can lose access to grant funding.
Other deals also make or break all types of housing organisation. Do we purchase a new IT system? What about the Private Finance Initiative? Should we get into extra care? Will we partner for maintenance? How successful have your deals been?
- What recent deals have you entered into? What went well? What can you learn from experience? Do your deals come in on budget? Were the anticipated savings achieved? If not, why not? Are all your expectations met?
- Are you clear on the objectives and targets we set for deals? What is the evidence?
- Why are you trying to grow? What’s in it for the organisation? How will your current tenants and leaseholders benefit?
- Do you find out who has done similar deals to talk to them and learn the lessons?
