MERGERS & ACQUISITIONS

If M&A fails, it is not often caused by mismanagement of the 'harder' factors, instead it is because the 'softer' people related factors are not well taken care of.

Mergers & Acquisitions

Ample research suggests that many Mergers and Acquisitions (M&A) fail to deliver on the promised value creation. In our experience, the cause of this under-performance typically is not the insufficient management of the “harder factors", such as financial valuation or legal and commercial due diligence. Instead, our clients tell us that in making M&A work, the human side is actually the most challenging.

Have we as Owners and/or Leaders of both involved companies developed a strong enough relationship and level of trust? Are all stakeholders fully aligned on the strategic intent and planned synergies? What level of integration of operating model and culture is required? How do we set up / change the Executive Team(s) and appoint (new) Leaders in a fair and transparent way? Who are the critical talents on both sides, did we identify them and do we have a plan to keep them on board?

We can help to address all of the questions as raised above. We can support Chinese / Asian companies that acquire overseas companies and the other way around. We focus our efforts on the PMI (Post Merger Integration) process, but are often already involved during pre-deal stage. Please read more in our recently published "Busting 4 Myths about M&A and Culture Integration in China" in Harvard Business Review China.