Mergers and Acquisitions, Post-Combination Integration
Specialists in Integration
Research evidence going back to the 1970s demonstrates that mergers and acquisitions have an unfavorable impact on profitability. They are strongly associated with lowered productivity, labor unrest, higher absenteeism, and poorer accident rates. Depending on which study one reads, 50% to 80% of all mergers and acquisitions turn out to be financially unsuccessful. Keep in mind that most research studies have investigated combinations in which the two firms were rooted originally in the same national culture.
Research also indicates that senior executives rate "underestimating the importance and difficulty of integrating cultures" as a major cause of integration failures.
What will enable any new merger, acquisition, or joint venture to contradict this strong trend? The answer does not lie in massive, exhausting effort. All combinations require that. The answer lies in what you pay attention to. The ingredient missing from many M&As is careful, sustained attention to the cultural aspects of the integration process. Our experience and ongoing practice, positions us as fully prepared to provide this ingredient.
Whether your entity is considering expanding by acquiring another entity, or merging with another entity, our associates have the experience and dedication necessary to advise you through the process, from negotiation of the deal, negotiation of the financing, closing of the deal, and integration of the new entities into one operating entity.