HP and Autonomy give a great example to the importance of understanding synergies when making a cross-border deal.
Differences in accounting practices, especially revenue recognition, created a disconnect between HP and Autonomy. This led to a massive write down on HP’s books and eventually the sale of Autonomy.
The environment, specifically the perception of the public, lead to negative media coverage and concerned shareholders.
Friction and distrust resulted from differences in behavior between HP and Autonomy. One company focuses on tasks, while the other focuses on relationships.
Lack of communication by both HP and Autonomy lead to Autonomy functioning as an independent unit. Communication, as a result, never developed.
Applying the Mergers and Acquisitions Synergies Framework to the HP-Autonomy shows the cultural missteps that resulted in a failed merger.
Had Microsoft recognized the differences in the synergies between the company, the acquisition of Nokia would have resulted in a more profitable exchange for both parties.
The differences in financial reports and even the culture of Nokia’s company may have contributed to the poor acquisition.
Finland was proud of their homegrown company, Nokia. Microsoft did little to alleviate the Finns’ concerns and the acquisition suffered.