In 2012, following an $11.1 billion takeover of Autonomy a year earlier, HP recorded a record of around $8.8 billion. Following an internal investigation, HP alleged that Autonomy had “accounting irregularities” that had contributed to overpricing their business (which Autonomy strenuously denied). At around the same time, shareholders sued HP for the losses they incurred, eventually settling for $100 million.
What a mess!
It begs the question: if a giant like HP can’t get their due diligence right, what hope is there for other businesses? In this case, as in many other disastrous M&A actions, it’s the things you don’t know that cause the most significant problems.Read More