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.