7 avoidable M&A self-inflicted wounds. Research shows over 50% of M&A deals fail to...
...create the value intended.
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M&A success isn't just about the deal:
it's about what happens after the ink dries.
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The root problems aren't rocket-science.
Yet we repeatedly see them go unaccounted for.
And then:
→ Growth stalls
→ Valuation ultimately suffers
→ 100's of people are negatively impacted
>>> UNNECESSARILY <<<
🟥🟥🟥 TOP 7 PROBLEMS 🟥🟥🟥
(𝟭) 𝗥𝗨𝗦𝗛𝗘𝗗 𝗗𝗨𝗘 𝗗𝗜𝗟𝗜𝗚𝗘𝗡𝗖𝗘
→ Skimping on due diligence results in
→ missing critical flaws in the target company.
(𝟮) 𝗣𝗢𝗢𝗥 𝗜𝗡𝗧𝗘𝗚𝗥𝗔𝗧𝗜𝗢𝗡 𝗢𝗩𝗘𝗥𝗦𝗜𝗚𝗛𝗧
→ Lack of a clear, detailed integration plan causes
→ chaos & missed opportunities post-acquisition.
(𝟯) 𝗦𝗬𝗡𝗘𝗥𝗚𝗬 𝗢𝗩𝗘𝗥-𝗘𝗦𝗧𝗜𝗠𝗔𝗧𝗜𝗢𝗡
→ Overly optimistic about the synergies
→ results in financial targets not being met.
(𝟰) 𝗡𝗘𝗚𝗟𝗘𝗖𝗧𝗜𝗡𝗚 𝗞𝗘𝗬 𝗧𝗔𝗟𝗘𝗡𝗧
→ Failing to secure key employees early on
→ leads to loss of valuable knowledge and skills.
(𝟱) 𝗜𝗚𝗡𝗢𝗥𝗘𝗗 𝗖𝗨𝗟𝗧𝗨𝗥𝗔𝗟 𝗖𝗟𝗔𝗦𝗛𝗘𝗦
→ Underestimating the integration of differing
→ company cultures leads to discord and problems.
(𝟲) 𝗖𝗢𝗠𝗠𝗨𝗡𝗜𝗖𝗔𝗧𝗜𝗢𝗡 𝗕𝗥𝗘𝗔𝗞𝗗𝗢𝗪𝗡
→ Poor communication with stakeholders
→ creates uncertainty, fear, and resistance.
(𝟳) 𝗣𝗥𝗘𝗠𝗔𝗧𝗨𝗥𝗘𝗟𝗬 𝗥𝗘𝗠𝗢𝗩𝗘𝗗 𝗔𝗨𝗧𝗢𝗡𝗢𝗠𝗬
→ Stripping the acquired biz of its autonomy
→ too quickly destroys the value that it provides
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Inorganic growth is a very sound way
to improve company valuation
when done right.
It's also a fast way
to increase operational thrash
when you drop the ball before/during/after.
🟩🟩🟩 ACTION 🟩🟩🟩
If you're hashtag#CEO or hashtag#COO
struggling with post-M&A complexities
▶️ REACH OUT ◀️
We can discuss how to unwind the mess.
(Let's not mince words: it's a mess.)