These are considered some of the key ingredients to a successful PMI, but very often this is not the reality when companies are making acquisitions. How do you make a good PMI business case to senior management to make sure you get the necessary time, resources and attention to succeed with the integration? especially if this is only being considered after the deal has already been made?
There is enough data from the beginning of the merger waves in the 19 century available to show that more than 50% of the M&As fail. REsercah and analysis have attributed this to companies not doing enough pre-work in terms of defining the Strategic objectives by Management and also not putting time, attention, and the right resources such as advisors and other support staff during the integration planning, due diligence and post-merger integration stages. Showing What the successful M&As have in common and the reasons for the failure of the others through data may help with the business case.
A very key issue highlighted by the OP. Indeed you see cases where management thinks, ‘the deal is done, now get on with it’. Very little effort is put into integration, and it is expected that everything will sort itself out in the fullness of time. This doesn’t work, and only stores up problems for the future.
Indeed an crucial topic! By showing some stats, especially also about the fact, that synergies are often overestimated and are not achieved, top management should be able to understand the importance of having dedicated resources to do the PMI.
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