A convergence of reputable, cross-industry research tells us that 70% to 83% of all mergers and acquisitions (M&As) fail to produce any benefit for shareholders and over half actually destroy value. Interviews with over 250 senior executives involved in more than 800 deals during the past two years revealed that the overwhelming cause for failure are people and organizational culture challenges. Difficulties encountered in business combinations are amplified when people integration has not been seriously (i.e., rigorously) evaluated as part of diligence.
Merger success is possible. However, being part of the small fraction that succeed requires forethought, insight, planning, and efficient action.
To the point in the transaction where the papers are signed, the M&A business is predominantly financial – valuing the assets, determining the price, and due diligence. Before the ink is dry, however, this financially-driven deal becomes a human transaction filled with emotion, trauma, and survival behavior; involving the non-linear, often irrational world of human beings in the midst of change.
Ankura works with senior-level teams to help set the stage for integration by creating a consensus around vision, mission, guiding principles, and organizational culture preservation and formation. To ensure the smoothest possible transaction and transition, Ankura will: