Rigzone article today!
M&A can make – and, at times, break – a company, perhaps the most recent example coming from Weatherford’s recent announcement to file bankruptcy.
“Weatherford is a classic example of a company that was built through 100 percent M&A – aggressive M&A,” said Padden. “Adding a lot of pieces together, there were some very good business lines in Weatherford, but there were a lot of things that probably should not have been pursued.”
Things can turn from a fairytale to a nightmare.
“If you don’t manage it correctly, you find that, like with all big companies … the best people who work with Weatherford are gone,” Padden said. “Business lines have gone to competing companies in many cases, so it’s probably that the company honed in on M&A and lost focus. [Weatherford] got to scale through a strategy that ultimately didn’t work and then when you lose good people – even if you’ve got a good business – you’re not going to be able to keep that going.”