Reply To: Deal Speed – Matter of attitude/culture?


@Gregory Weisser – Interesting question. Which is better is hard to answer. I believe they are just different and a matter of stakeholder preference. Would need to dig deeper into the 1 – 3-year success post-close data to begin to look at which might be better than the other. Mercer, Deloitte, and many others have done some studies reflecting high failure rates of M&A transactions in that 1 – 3-year window post close due in large part to culture misalignment and people related issues. Given this, if, for example, deals done quickly, as you share US teams attempt to do, retain intellectual property and key personnel more often and longer, gain synergy of culture between merged entities that is stronger and longer lasting, and the desired outcomes – financial, market share, or whatever else defined the thesis for the transaction – bear the fruit intended longer and stronger than deals done slower, as you share is common in Europe, then it would appear the faster deals would be better. If this outcome favors the slower deals, then they may be better. But if the data reflects little to no difference, then it just may not matter and simply be a preference for the stakeholders involved.

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