ich cannot be measured are capability and competency acquiring, building foundations for future growth and defending markets where the company was already present. These judgments can be done by internal managers who are well aware of what the company wanted to achieve out of the acquisition. Sometimes companies engage the services of external consultants to get an overview of theseThe five critical factors that measure the success or failure of an acquisition are Financial measures, Economic measures, Strategic measures, Executive measures and Regulatory measures. Let us see how each of them can give your managers an overview of the acquisition and the implementation. When you are analysing the acquisition after a period of 6 months you would like to see whether the acquisition has improved the earnings per share (EPS) or return on Investments (ROI).

Have shareholders respected your decision of acquisition in the right spirit by lifting your company's share price. Are the cumulative abnormal returns (CARs) positive. If you get a positive answer to all these questions then your acquisition has fallen in place.

The next measure is the economic measure. You need to understand whether the acquisition has delivered in terms of higher efficiency and profitability. Has the acquired entity synergised into the parent company and achieved economies of scope and scale. If both of these have been realized then the company can translate these into improved profitability with time. The third and a very important measure is the strategic measure.

Has the company achieved the strategic objectives that the top management had set out during the time of acquisition? Among the strategic objectives there are certain goals that can be quantified and certain ones that cannot be quantified. The goals that can be quantified are EPS, ROI, cash flows, market share and cashflow stability. The factors which cannot be measured are capability and competency acquiring, building foundations for future growth and defending markets where the company was already present. These judgments can be done by internal managers who are well aware of what the company wanted to achieve out of the acquisition. Sometimes companies engage the services of external consultants to get an overview of these

her the acquisition has improved the earnings per share (EPS) or return on Investments (ROI).

Have shareholders respected your decision of acquisition in the right spirit by lifting your company's share price. Are the cumulative abnormal returns (CARs) positive. If you get a positive answer to all these questions then your acquisition has fallen in place.

The next measure is the economic measure. You need to understand whether the acquisition has delivered in terms of higher efficiency and profitability. Has the acquired entity synergised into the parent company and achieved economies of scope and scale. If both of these have been realized then the company can translate these into improved profitability with time. The third and a very important measure is the strategic measure.

Has the company achieved the strategic objectives that the top management had set out during the time of acquisition? Among the strategic objectives there are certain goals that can be quantified and certain ones that cannot be quantified. The goals that can be quantified are EPS, ROI, cash flows, market share and cashflow stability. The factors which cannot be measured are capability and competency acquiring, building foundations for future growth and defending markets where the company was already present. These judgments can be done by internal managers who are well aware of what the company wanted to achieve out of the acquisition. Sometimes companies engage the services of external consultants to get an overview of these

is the economic measure. You need to understand whether the acquisition has delivered in terms of higher efficiency and profitability. Has the acquired entity synergised into the parent company and achieved economies of scope and scale. If both of these have been realized then the company can translate these into improved profitability with time. The third and a very important measure is the strategic measure.

Has the company achieved the strategic objectives that the top management had set out during the time of acquisition? Among the strategic objectives there are certain goals that can be quantified and certain ones that cannot be quantified. The goals that can be quantified are EPS, ROI, cash flows, market share and cashflow stability. The factors which cannot be measured are capability and competency acquiring, building foundations for future growth and defending markets where the company was already present. These judgments can be done by internal managers who are well aware of what the company wanted to achieve out of the acquisition. Sometimes companies engage the services of external consultants to get an overview of these

re is the strategic measure.

Has the company achieved the strategic objectives that the top management had set out during the time of acquisition? Among the strategic objectives there are certain goals that can be quantified and certain ones that cannot be quantified. The goals that can be quantified are EPS, ROI, cash flows, market share and cashflow stability. The factors which cannot be measured are capability and competency acquiring, building foundations for future growth and defending markets where the company was already present. These judgments can be done by internal managers who are well aware of what the company wanted to achieve out of the acquisition. Sometimes companies engage the services of external consultants to get an overview of these

ich cannot be measured are capability and competency acquiring, building foundations for future growth and defending markets where the company was already present. These judgments can be done by internal managers who are well aware of what the company wanted to achieve out of the acquisition. Sometimes companies engage the services of external consultants to get an overview of these factors.

The next measure that the company looks into is Executive measure. Have the promoters and the top management gained out of this acquisition. Have they got better bonuses, stock options and a hike in their salaries. There is a psychological factor for the top guns in a company. They expect better benefits, industry standing and prestige as the size of their companies increase. Have these been satisfied. Again if the answer is yes the acquisition is moving in a proper direction. The last measure is the regulatory measure.

If the company has complies to the regulations prevailing in the land. Example may be the anti-trust legislation. Have the company complied with that? When there are large acquisitions these kind of questions are bound to come up and the management needs to take due care to come up with satisfactory answers. If all or some of the above criterion as mentioned above is satisfied then we can safely assume that the acquisition has moved towards a positive direction fulfilling all or some of the goals.