03 Sep Why do so many deals still fail to deliver long term value?
Have your say on internal conditions and attitudes conducive to successful M&A.
Regardless of the economic climate, M&A continues to have an unenviable reputation of high risk and failure rates, still as high as 40% according to some recent reports. While many organisations consistently make M&A work for them, avoidable errors and problems still occur for some across successive M&A projects, regardless of their experience in M&A, or their understanding and use of traditional best practice. In any other sphere of business, such high failure rates for a key strategic activity would simply not be tolerated.
If M&A is ever to become a more reliable strategic pursuit, those involved need to find and share the answers to some inconvenient questions:
– Why despite everything is success in M&A still so elusive?
– Why are such high M&A failure rates acceptable to so many?
BTD believes that the problems are not with traditional best practice, but instead depend on underlying internal conditions which shape the environment and motivations in which deals are assessed, executed and integrated; conditions that for a variety of reasons are accepted rather than challenged. They have recently explored this issue through a series of interviews and round-table discussions, and have recently surveyed business strategy, M&A and other executives across the globe to better understand and detail their findings.
If you an executive or Board member within a corporate organisation, we would like to include your own views in this work. To do so, click here. In addition to receiving a copy of the findings and insights of this study, you will also be invited to an executive Roundtable later in 2013 to discuss findings and share experiences on how others address these issues.