top of page

Avoid (or undoing) the Top 7 Causes of M&A FAILURE


7 avoidable M&A self-inflicted wounds. Research shows over 50% of M&A deals fail to...



...create the value intended.



๐ŸŸจ๐ŸŸจ๐ŸŸจ๐ŸŸจ๐ŸŸจ๐ŸŸจ



M&A success isn't just about the deal:


it's about what happens after the ink dries.



๐ŸŸจ๐ŸŸจ๐ŸŸจ๐ŸŸจ๐ŸŸจ๐ŸŸจ



The root problems aren't rocket-science.


Yet we repeatedly see them go unaccounted for.



And then:


โ†’ Growth stalls


โ†’ Valuation ultimately suffers


โ†’ 100's of people are negatively impacted



>>> UNNECESSARILY <<<



๐ŸŸฅ๐ŸŸฅ๐ŸŸฅ TOP 7 PROBLEMS ๐ŸŸฅ๐ŸŸฅ๐ŸŸฅ



(๐Ÿญ) ๐—ฅ๐—จ๐—ฆ๐—›๐—˜๐—— ๐——๐—จ๐—˜ ๐——๐—œ๐—Ÿ๐—œ๐—š๐—˜๐—ก๐—–๐—˜


โ†’ Skimping on due diligence results in


โ†’ missing critical flaws in the target company.



(๐Ÿฎ) ๐—ฃ๐—ข๐—ข๐—ฅ ๐—œ๐—ก๐—ง๐—˜๐—š๐—ฅ๐—”๐—ง๐—œ๐—ข๐—ก ๐—ข๐—ฉ๐—˜๐—ฅ๐—ฆ๐—œ๐—š๐—›๐—ง


โ†’ Lack of a clear, detailed integration plan causes


โ†’ chaos & missed opportunities post-acquisition.



(๐Ÿฏ) ๐—ฆ๐—ฌ๐—ก๐—˜๐—ฅ๐—š๐—ฌ ๐—ข๐—ฉ๐—˜๐—ฅ-๐—˜๐—ฆ๐—ง๐—œ๐— ๐—”๐—ง๐—œ๐—ข๐—ก


โ†’ Overly optimistic about the synergiesย 


โ†’ results in financial targets not being met.



(๐Ÿฐ) ๐—ก๐—˜๐—š๐—Ÿ๐—˜๐—–๐—ง๐—œ๐—ก๐—š ๐—ž๐—˜๐—ฌ ๐—ง๐—”๐—Ÿ๐—˜๐—ก๐—ง


โ†’ Failing to secure key employees early onย 


โ†’ leads to loss of valuable knowledge and skills.



(๐Ÿฑ) ๐—œ๐—š๐—ก๐—ข๐—ฅ๐—˜๐—— ๐—–๐—จ๐—Ÿ๐—ง๐—จ๐—ฅ๐—”๐—Ÿ ๐—–๐—Ÿ๐—”๐—ฆ๐—›๐—˜๐—ฆ


โ†’ Underestimating the integration of differing


โ†’ company cultures leads to discord and problems.



(๐Ÿฒ) ๐—–๐—ข๐— ๐— ๐—จ๐—ก๐—œ๐—–๐—”๐—ง๐—œ๐—ข๐—ก ๐—•๐—ฅ๐—˜๐—”๐—ž๐——๐—ข๐—ช๐—ก


โ†’ Poor communication with stakeholdersย 


โ†’ creates uncertainty, fear, and resistance.



(๐Ÿณ) ๐—ฃ๐—ฅ๐—˜๐— ๐—”๐—ง๐—จ๐—ฅ๐—˜๐—Ÿ๐—ฌ ๐—ฅ๐—˜๐— ๐—ข๐—ฉ๐—˜๐—— ๐—”๐—จ๐—ง๐—ข๐—ก๐—ข๐— ๐—ฌ


โ†’ Stripping the acquired biz of its autonomy


โ†’ too quickly destroys the value that it provides


__________________



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.



๐ŸŸฉ๐ŸŸฉ๐ŸŸฉ ACTION ๐ŸŸฉ๐ŸŸฉ๐ŸŸฉ



If you'reย hashtag#CEOย orย hashtag#COOย 


struggling with post-M&A complexities



โ–ถ๏ธ REACH OUT โ—€๏ธ



We can discuss how to unwind the mess.



(Let's not mince words: it's a mess.)

0 views0 comments

Comentarios


bottom of page