In it business ecosystem, mergers, acquisitions and large deals They are often seen as key moments that can transform a company and open new growth opportunities. However, the harsh reality is that between 70% and 90% of these agreements do not meet the expected resultswhich underlines the complexity and risk involved in these processes. This figure is still alarming, and forces us to question what we are doing wrong and how we can improve.
One of the biggest problems with these agreements is the lack of adequate post-signing planning. Companies invest large amounts of time and resources in negotiating, closing deals and generating expectations among shareholders, but the same attention is rarely paid to the subsequent integration process. This causes that, Once the agreement is finalized, the operational, cultural and strategic problems that arise are not resolved in time, which can lead to failure.
Another critical point that I have observed is the lack of communication. In many cases, employees, who actually execute the strategies, are not involved in the transition process. This generates a disconnection between the corporate vision and what happens on a day-to-day basis. Without clear, two-way communication, work teams cannot align their efforts with new business objectives, which inevitably affects results.
A recent report from M&A Consulting shows that, for a merger to be successful, much more is required than a signature on a piece of paper. A strong integration plan that involves senior management to the most operational levels is essential. We have learned that successful agreements do not depend only on the financial strategy, but also how we manage the company culture during the transition.
Culture clash is one of the main reasons why these agreements fail, as the lack of alignment between different ways of working creates friction that affects productivity and morale.
The cost of a failed deal is not only financial. The company’s reputation is also at stake. In a market as competitive as the current one, we cannot afford to make mistakes that damage our image with clients and business partners.
The impact of a poorly managed merger can take years to reverse, delaying our long-term growth objectives.
How can we avoid these failures?
From my perspective, the key lies in three fundamental pillars: communication, integration and cultural adaptation. First, we must ensure that all levels of the company, from senior management to operational teams, clearly understand the objectives and changes that the agreement will bring.
Second, it is essential to have a detailed integration plan, which not only focuses on the financial aspects, but on how the changes will be implemented in daily operations.
And third, we cannot underestimate the importance of organizational culture. Investing in cultural integration programs is essential to minimize friction and ensure that all employees feel part of the new project.
Big deals have the potential to transform our businesses, but only if they are managed properly. It is not enough to get a contract signed, but true success lies in how we integrate new operations and how we keep our teams aligned.
If we want the next deal to be a success, it’s time to change the way we approach the post-merger process and leverage human capital to create value.
President of Mercer Argentina and director of Career for Argentina, Uruguay and Paraguay.
Source: Ambito
