TRANSFORMING ORGANIZATIONS

M&A Integration

It’s exhilarating chasing the deal. It’s logical deciding which factories to close. It’s rational choosing which processes to merge.

But still most M&As fail.

They wouldn’t if the same discipline and diligence that is applied to the financials of closing the deal are also applied to leadership and cultural issues.

M&A Reality

The goal of any M&A activity is to achieve the strategic and financial promise with sustained results. Yet most mergers fail to achieve their targeted value.

The Facts
  • Two years after the deal closed, 53% of the transactions did not meet the expectations articulated at the time of the merger announcement.
  • 50% of all transactions actually destroy value and additional 33% do not increase value.

Focus on Leadership and Talent is the Key to Success

The Evidence
  • Proactive pre- and post-merger leadership and talent management improves M&A performance by 45%.
  • Effective leadership integration increases M&A success rate to between 60% – 70%.
  • 90% of successful M&As address culture within first 30 days after announcement.

How? Create the Leadership Game Plan

Pre-Close: First 100 Days: Months 4-6: Months 7-12:
Strategic Alignment Launch Implementation Consolidation and Leverage

Merger Integration Must Haves

diagram of merger integration must haves

The River Strength Meter: Merger Integration


WEAK MODERATE STRONG
Hubris and Numbers Prevail Engineered: for Failure Engagement 101 Change Leadership Enlightened Integration Cracking the Code