Leadership Partners Blog

Post Merger Integration

80% of all mergers and acquisitions fail to meet the financial projections pre-merger.  Ouch!

The way a business expands its portfolio is a decision made by a person, or group of executives, who spends time looking at numbers and graphs and spreadsheets and financial documents.  Questions include how the operating systems will be affected, how the equipment will be transferred, how this will affect the stock price, how the computer systems will works.  These are all valid, important questions.  BUT, what about people?  Unless you live in a science fiction movie, people carry out the work.  The effectiveness of that work is a factor of their interactions, or relationships.

Questions that we ask during a merger and acquisition include: How do the employees of each separate company interact?  Is this effective?  Where is there a need for improvement?  How do the employees and the customers interact?  Is this effective? Where is there a need for improvement?  How will employees of the newly formed company interact?  Are we overlooking any issues?  Who else needs to supply input?

These questions are just the tip of the iceberg.  We said above that 80% of all mergers and acquisitions fail to meet the financial projections pre-merger.  Why?  Because the organizers failed to ask how interactions or relationships would impact the merger.

Need help with this?  Check out our case study:

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