LR pixel

Start typing and press enter to search

Failed Post-Acquisition Integration

Why Post-Acquisition Integration Often Fails—and How to Fix It

Why Post-Acquisition Integration Often Fails—and How to Fix It

Why Post-Acquisition Integration Often Fails—and How to Fix It

Post-acquisition integration is often one of the most challenging phases of any merger or acquisition. McKinsey estimates that 60-70% of all acquisitions fail to deliver the expected value, largely due to poor integration planning and execution. This is a critical issue for private equity firms, where the failure to realize synergies and streamline operations can quickly erode enterprise value.

Why do these integrations often fail? For one, many firms treat post-acquisition integration as a purely operational process, overlooking the human and cultural factors that play a huge role in its success. Employees are often resistant to change, and without a clear, well-communicated strategy, the integration can become chaotic. PwC highlights that 68% of senior executives admit that their M&A processes focus too heavily on financials, leaving operational and cultural issues under-addressed.

Moreover, integration is often rushed, as companies aim to achieve rapid cost synergies or revenue enhancements. But speed can lead to misalignment between leadership, teams, and processes. The result is a failure to integrate systems effectively, a breakdown in communication, and a loss of momentum.

At How2-Change Consultancy, we believe in taking a holistic approach to post-acquisition integration. Our experience with PE-backed businesses has shown us that successful integration requires a focus not just on systems and processes, but on people and culture. We help leadership teams develop and execute a comprehensive integration strategy that includes change management, operational alignment, and employee engagement.

With our How2-Change Reality Check®, we ensure that your integration is set up for success from day one, minimizing disruptions and maximizing value. If you want to prevent your next acquisition from becoming another statistic, let us show you how a well-structured integration can drive long-term value.

Contact us today to learn how we can help you avoid the common pitfalls of change management and ensure the success of your next transformation. Let’s work together to turn your opportunities into outcomes.

 

What’s next?

Follow us on LinkedIn

Contact us for an informal discussion, or book in some time now via our online calendar

Did you know: Mismanaging Change is the number 1 reason CEOs lose their job

Would you like a copy of our Change Management Guide?

 

Further Useful Links

Would you like our free Change Management Guide?

Want to know more about our services and How we work?

How2-Change Reality Check®

Business Change Training

Business Change Coaching

Business Change Recruitment

Business Change Implementation

Here’s a link to our General FAQs page. We also have specific FAQs for each of our services.

Posted on 02/10/2024 in General