The AAdvantages of Merger Consulting

Last week I got a letter congratulating me for hitting the 3,000,000-mile status flying the silver wings of American Airlines.  My prizes:  two new AAdvantage Platinum baggage tags and four free systemwide upgrades. 

But even if you add in the several million miles I’ve flown on other carriers over the years, I’m still way behind Ryan Bingham (George Clooney) with his 10 million miles in the movie Up in the Air.  Shucks, American even scrubbed me from the Executive Platinum roster because I wasn’t hitting their annual mileage bogey.

Anyway, the letter got me to thinking about all the airline mergers I’ve seen during my road warrior years.  For example, I remember consulting with the executive team at Piedmont Airlines during the USAir takeover, telling these fine gentlemen that, indeed, their wonderful culture was toast.  Piedmont was a favorite of flyers, but USAir was better at making money.  And M&A is a money game.

If you want to understand dealmakers’ dominant mindset, here’s my advice:  Follow the money!  Likewise, if you’re curious about how you’ll personally be affected by the merger, look at the situation from a financial angle. 

When it comes to shaping decisions regarding acquisition integration, money will carry the most influence.

You consult on enough deals, you know this to be true.