IN BRIEF
Recent studies have shown that close to 50% of post merger
integrations fare poorly. While there are no hard and fast rules
that will guarantee a successful merger, in this article we look at
the risks involved and some of the ways to minimise those risks and
ensure a greater likelihood of a successful integration.
Whether through a share purchase or the acquisition of a
business and its assets, a merger presents both opportunities and
challenges. The biggest of those challenges is arguably the
integration of the two businesses and their personnel following the
merger.
Recent studies have shown that close to 50% of post merger
integrations fare poorly. There are no hard and fast rules that
guarantee a merger will be successful, but it is possible to
identify the main risks to a successful post merger integration
(PMI). These can be broadly categorised as:
