chapter  7
24 Pages

Not Always a Happy Ending

Rarely a happy ending, in fact. Data recording the success rate of alliances and

mergers in the business world as a whole point to an overall figure of less than 50%

for alliances, and of approximately 30% for mergers. After peaking in around the

year 2000, alliance numbers worldwide are now on the wane, and while they still

remain one of the favourite corporate solutions to address the challenges of an ever

more competitive global market, the downward tendency seems unrestrainable – with

perhaps the exception of the US market, where a rebound is in sight. Mergers, on the

other hand, are more popular, fuelled by what are still relatively low interest rates

and capital availability on the free market. Their promise to generate higher returns

through consolidation continues to lure the attention of the business community, in

spite of the fact that two out of three fail utterly.