Reasons for M&A Failure

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  • #120574
    Haytham Wehbe
    Participant

    What are the major causes for M&A failure.

    #121616
    Damien
    Participant

    Based on my experience some of the key reasons are as follow:
    1. Cultural issues not captured during due diligence, underestimated and/or not properly addressed before/for Day 1
    2. Limited due diligence scope often linked to the fear to spend too much money while the deal could not be signed due to state preemptive right when states own a minority stake
    3. Discontinuity in resources between the due diligence team and the post-merger integration team
    4. Starting the integration project post-signing only and focusing mainly on the day 1 for finance
    5. IT synergies notably system decommissioning having an over-evaluated value and the decommissioning is delayed

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