According to The Harvard Business Review, most merger integrations fail, with failure rates ranging from 70% to 90%. Worse yet, the figures are consistent across studies. They haven’t moved for years.

So, how can businesses lower risk and improve their chances of success? Of course, each agreement is unique, with objectives ranging from eliminating the surplus capacity to expediting market access or obtaining skills and technology sooner and at a cheaper cost.

  • Failure to develop a competitive sales strategy.
  • Not Prioritizing the Post-Merger Integration Plan.
  • Keeping unfinished books, records, and contracts.
  • Growth is overestimated.
  • Valuation Errors – Failure to Perform Comprehensive Due Diligence.
  • Not enlisting the services of a competent financial advisor or investment banker.
  • Choosing the incorrect legal advice.
  • You don’t have to make the errors we covered in this article.

If you’re unsure how to navigate the buyer/seller market and need assistance, our team of seasoned M&A professionals is always available to assist.

We are a Texas based M&A Acquisition and Advisory practice focused on the Independent P&C Insurance Market. Whether you are looking to retire, seeking perpetuation planning, or simply exploring options, let’s talk.

Our parent company, Davidson Stewart Morelock, has been an independent P&C agency since 2008, with our principals offering over 50 years combined experience in the insurance industry. We have successfully worked with a number of agencies creating mutually beneficial solutions for owners, partners and buyers.