Stakes at play
Two out of every three M&As do not achieve the goals set out at the transaction stage and end up damaging the business’s economic and social value over the long term.
- Underestimation of risk related to the human factor.
- Over emphasis of economic considerations and concomitant absence of any plans for the preservation of employment or for the management of impacts on the community at large.
- Underestimation of efforts required to bring about the change.
- Lack of understanding about cultural matters.
- Partitioning of tasks and of people involved leading to fragmentation of the project.
- Insufficient capitalisation on experience and knowhow accumulated from one deal to the next.
- Adoption of a systemic approach based on a set of components aimed at mitigating risk: economic, social and societal aspects of each transaction.
- Taking stakeholder expectations into account from the initial stages in order to limit the risk of objection to integration plans.
- Aligning HR strategies and objectives to those set out by the company.
- Uninterrupted transaction management to ensure seamless processing and thereby achieve better consistency throughout the process and enhance performance.