When a merger or acquisition unexpectedly heads south, the costs are painfully clear. Morale drops. Synergies fail to materialize. Key people—those you planned to keep—start heading for the exits. But what’s really going on? Why is the system suddenly failing?
A likely cause of the trouble is culture clash. Acquirers have well-developed toolkits for managing the financial and operational aspects of a deal; they track results … [ Read more ]
Content: Article | Authors: Dale Stafford, Laura Miles | Source: Bain & Company | Subject: Mergers & Acquisitions
The open secret about M&A is that most deals fail to generate the synergies companies expect when they announce a merger. In a Bain & Company survey of 352 global executives, overestimating synergies was the second most common reason for disappointing deal outcomes. We took a hard look at synergies in M&A to understand what the best companies do when estimating, announcing and pursuing them. … [ Read more ]
Content: Article | Authors: Adam Borchert, Alexandra Egan Ramanathan, Laura Miles | Source: Bain & Company | Subject: Mergers & Acquisitions
When companies merge, they embark on seemingly minor changes that can make a big difference to customers, causing even the most loyal to reevaluate their relationship with the company. Numerous studies have found that more than half of all mergers fail to deliver the intended improvement in shareholder value. Customer defections contribute to that high failure rate. Integration decisions come with an inherent tradeoff: If … [ Read more ]
Content: Article | Authors: Laura Miles, Ted Rouse | Source: Bain & Company | Subjects: Customer Related, Mergers & Acquisitions