Discuss post merger indicators that signal the meger will fail

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  • #35837
    Cheryl Taylor
    Participant

    With the historical high number of M/A failures discuss the early failure flags that most organizations ignore.

    #38959
    Yuin Harng Ng
    Participant

    I believe an early employee survey at the end of the first month would have highlighted how people feel about the merger and acquisitions, and if anything needs to change.
    Also, other red flags are dissatisfaction from customers and various stakeholders.

    #94730
    deniseyou
    Participant

    A significant cultural clash between the two merging organizations can be a red flag. If the companies have fundamentally different values, work styles, or organizational structures and struggle to align or find common ground, it can impede collaboration, hinder integration efforts, and create internal conflicts.

    Losing key talent from either or both organizations post-merger can be a warning sign. If high-performing employees start leaving the company, it may indicate dissatisfaction, smash karts, uncertainty about the future, or a lack of confidence in the merger’s success. Losing critical knowledge and expertise can disrupt business operations and hinder integration efforts.

    A sustained decline in financial performance after the merger can indicate integration challenges. If the merged entity fails to achieve the expected synergies or encounters difficulties in combining operations and cost structures, it may lead to decreased revenue, increased costs, or reduced profitability.

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