Why you Do it:
Mergers and Acquisitions (M&A, along with Divestitures and Consolidations) restructure the organization for some advantage or benefit. These efforts have a low probability of success around 40% to 50%.
Failure is due to one or more factors such as culture differences, operational incompatibilities, economies of scale not achieved, poor outcomes.
Achieving the synergy of a restructuring such as a merger or acquisition requires learning to navigate the unknown and anticipate the future environment. This creates a better set of change options for the organization and identifies a path to adaptation.
Increase the Probability of M&A success
Improve insight on operations using more objective analysis.
Benefits of M&A
Benefits that accrue from an M&A initiative are:
- Increased market share and competitive positioning.
- Cost savings through synergies.
- Expanded product and service offerings.
- Accelerated growth opportunities.
- Enhanced access to new customer segments
Expected Outcomes
Here are some frequently mentioned outcomes:
- Successful integration of business operations.
- Achievement of financial synergies.
- Strengthened brand and market influence