Mergers and acquisitions (M&A) occur when the ownership of companies, or their operating units, are transferred or combined. For those new to this work a daunting 50% failure rate has been documented.
Some acquirers seem to expect the target company’s people to integrate themselves. Others have an integration program but don’t get it up and running until the deal closes. Commonly, key people leave the business due to nervousness about the extent or duration of change and lack of clarity of the impact on that person. Sometimes the integration work soaks up so much time and energy from the team that the base business suffers.
With expert guidance and experience, the failure rate has been documented to fall below 30%. Engage the expert early and often:
- from the time you begin to contemplate a merger or acquisition to determine where value and risks lie,
- to pre-planning for the actual date the two entities come together (Day 1) and
- from Day 1 all the way through the two former entities having become one (the finish line).