Business deals should be good for business. So why do they fail?
Companies merge, acquire or divest with hopes of growing or profiting, but all too often—about 50% of the time—these hopes are dashed as the deal fails.
Mergers, acquisitions and divestitures rarely fail due to poor target screening or due diligence; they fail in execution or implementation. Why?
The unique challenges of integration or separation require specialized competencies that many businesses do not develop as part of their day-to-day. Mergers, acquisitions, and divestitures are not, after all, a daily occurrence.
When integrating or separating, can your business:
- Simultaneously plan the transaction strategy and transaction execution?
- Communicate a well-defined rationale for the merger, acquisition or divestiture? Align the deal’s strategy with enterprise portfolio management? Maintain focus on market realities and stakeholder expectations?
- Balance the new operating model? Enable capabilities required for scaling up or down? Clearly define new processes and procedures? Drive accountability to meet new targets? Align technology and systems? Inspire culture change?
Without these specialized competencies, integration or separation can be the Achilles’ heel of any business deal. Failure to plan for the strategic, cultural and operational challenges of merging, acquiring or divesting can mean failure to achieve the hoped-for growth or profit that initiated the deal.
We specialize in planning for and rising to the challenges of integration or separation so that your merger, acquisition, or divestiture is a strategic, cultural and operational success.
Learn how we can help you integrate or separate seamlessly.