Integration best practices

Viewing 7 posts - 1 through 7 (of 7 total)
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  • #52261
    Stephane Hetroy
    Participant

    What in your view is the best approach / method to improve the integration success rate for a serial acquirer company mid and long-term? we have always heard about iterative processes, preparation of PMO and workstreams ahead of signing, etc. but why we do still see based on research papers such a high failure rate in M&A transactions (I am really thinking about transaction adding value and not break even… thus a 80% or 70% of transactions destroying value or not bringing much except a volume effect and fees)

    #52311
    Yiwei Lee
    Member

    In reality, it would be difficult to really predetermine / predict any issues before PMO takes place. Hence, I believe that the managers / chief executives would have to fundamentally be aligned so that they can drive organizational changes

    #58702

    It’s also difficult to define success in objective terms and then generalize across all M&A. Having worked on many transformations, I would say that most all of them eventually declare victory when really they are just stopping. Often, the real goals of the organization are not well defined and even if they are, the people doing the work are unaware or confused. So I think the research is pointing out that most M&A events struggle to hit the original financial targets and shareholders suffer in the short-term, but winning is an infinite game and we never know what knock-on effects the acquisition might have in the future.

    #73257

    I’m new to M&A but I think Michael makes a great point about making sure the goals are well defined and transparent to all stakeholders. As with any project, a clear mission or charter is critical to defining success and to ensuring that everyone is working towards the same goal.

    #87326
    Anonymous
    Inactive
    #89139
    Anonymous
    Inactive

    The organization’s true objectives are not clearly stated, and even when they are, the workers may not be aware of them or may not understand them. Thus, it appears to me that the data is showing that most M&A transactions fail to meet their initial financial goals geometry dash world, which has a negative short-term impact on shareholders.

    #89295
    Yvonne
    Member

    The level of integration depends on the type of investor in the process. If the transaction involves private equity where the end game is a 3 to 5 year exist vs. strategic buyers who truly need to integratate the target into organization, the process and depth is very different.

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