Assessing the risk of M&A: Bruner's Disaster Framework applied to Berkshire Hathaway's Gen Re Acquisition

Abstract

Purpose

This paper aims to acquaint managers with a little known mergers and acquisitions (M&A) diagnostic tool that made its debut in the book Deals from Hell – M&A Lessons that Rise Above the Ashes (NY: Wiley, 2005) by Robert Bruner.

Design/methodology/approach

This paper offers a retrospective case study using Bruner's risk assessment framework to examine Berkshire Hathaway's 1998 Gen Re acquisition by CEO Warren Buffet, which proved to be a problematic deal. The case study makes use of recent post‐deal reports.

Findings

The case study supports the findings of Bruner's research regarding the utility of the M&A risk assessment framework presented in his book.

Research limitations/implications

Tthe field of real disasters could be the subject to further strategy‐based research.

Practical implications

Bruner's disaster‐based M&A risk assessment framework could be practically utilized in M&A.

Originality/value

This paper is practically‐oriented commentary on recently published M&A risk assessment research, which is analyzed via case study.

Citation

Calandro, J. (2008), "Assessing the risk of M&A: Bruner's Disaster Framework applied to Berkshire Hathaway's Gen Re Acquisition", Strategy & Leadership, Vol. 36 No. 6, pp. 20-27. https://doi.org/10.1108/10878570810918322