``People don't resist change.
They resist BEING changed.`` -Peter Senge
FACT:
“70%—90% of acquisitions are abysmal failures.”
-Harvard Business Review
FICTION:
Merger cooperation post-deal is like the Brady Bunch! What’s the problem?
(said no one ever).
BUT WAIT ...
Mergers are on the RISE in 2021
During Q1 of 2021, global mergers & acquisitions are up 94% compared to Q1 of last year, recording the highest year-to-date total since 1980 (Refinitiv).
Mergers are a top growth strategy IF you avoid the fallout:
- 70-90% failure is typical
- 30% or greater voluntary attrition in the first year
- Leadership focused on acquisition and not alignment
How can you preserve your investment and the health of BOTH cultures?
Land Mines and Opportunities Post-Merger Integration
TOP 3 Causes of M&A Failure
- Seller “laissez-faire” + buyer with unrealistic expectations.
- Culture shock derails the integration.
- Poor communications from the beginning to the end of the M+A process, leads to confusion, lack of proper hand-offs = high attrition.
Lack of aligned purpose among top leaders
No cultural due diligence
Divergent expectations in integration
Creating Value Post-Merger
How to be in the 10-20% that succeed?
- Diligent financial/business analysis translates to value ONLY when leaders are aligned on implementation of clear integration plans
- Stakeholder BUY-IN is where the real value is captured in a merger: Do employees and key partners WANT and EMBRACE the change?
- Culture FOCUS on preserving and evolving the “special sauce” of both companies creates competitive advantage long-term
3 Essential Elements of Merger Success
- Accelerate Growth with Quick Wins – requires leaders at the top to be aligned
- Evolve a Common Culture to Unify People – catalyze enthusiasm for “WHY” and “WIIFM”
- Create a Simple, Winning Strategy – drive speed and quick wins in execution
20+ Years of Experience in the M&A Space Culture Pros has created a valuable resource
Inside Your Playbook:
- Primary causes of merger failure (and how to avoid them)
- Lessons from famous flops
- 3 essential ways to achieve rapid success
- 4 stages of culture integration, with goals for each
- 5 essential habits for igniting innovation in a merger
- Tips on culture assessment, including sample questions
- Follow-up video lessons with examples
Profitable Growth =
Happy People + Good Ideas + Perseverance
