In a
recent blog post, we explored the reasons why a sizable number
of M&A deals fail to complete every year. As discussed in that
post, the closing of an M&A deal does not necessarily announce
the success of a transaction. In fact, as high as 60% of M&A deals fail to deliver value
even after a victorious closing, as an A.T. Kearney study shows.
The Harvard Business Review reports that the
failure rate of an M&A deal falls in the range of 70 –
90%.
Extensive research has been conducted to locate the elements
that are fatal to M&A deals post-closing. With the surging
interest in tech M&As, people have started to look at the
reasons why the high death rate has also translated to the tech
industry. While numerous factors can be named, the consensus among
commentators directs our attention to mistakes in post-M&A
integration of culture and business.
