The Editor’s Desk: What can we learn from Metaco and Comair?

While the specific tale of Comair's acquisition of Metaco is unique, the story of failed acquisitions is as old as corporations themselves. Most mergers fail to deliver on their promises and end up costing more than they produce. In this episode, Alec Hogg and I discuss the lessons that can be learned from Metaco's struggles. We also talk about IQ and what it really means – I'm a confirmed IQ sceptic, but there are plenty of people out there who put a lot of stock in the number. – Felicity Duncan

When the founders and bosses of Metaco signed up to join Comair as a strategic acquisition they were focussed on the upside. Comair had big plans for an all-new business line and it seemed like the sky was the limit. But a shift in direction at the top sent the deal into a spiral. With few revenue sources outside of selling its services to a newly thrifty Comair, Metaco struggled to deliver on its financial goals and in short order the deal unravelled.

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