Experts agree that post-merger integration is critical

It’s no secret that the majority of M&As fail. While on paper, synergies and market opportunities promise to yield big gains, the key to building a great and enduring enterprise lays not only in the initial M&A strategy, but also in execution of the details. The experts agree that many M&As ultimately erode shareholder value and fail to deliver on promised returns due to flawed post-merger integration strategies. 

Some notable commentary

"Most [mergers] fail to add shareholder value—indeed, post-merger, two-thirds of the newly formed companies perform well below the industry average." — Harvard Management Update

“M&As are a key element of many firms’ strategies to maximize value and create sustainable competitive advantage. Yet many acquisitions fail…researchers estimate the range for failure is between 50% and 80%.” – Robert Holthausen, Professor of Accounting, Wharton

“Mergers are failing to deliver cost-savings due to problems with IT due diligence, according to a survey published this week.” Rolf Myller, Computer Weekly

“More than 50 percent of companies were not able to provide any integration within three months of acquisitions. More than 33 percent of companies did not expect to complete integration for more than two years or could not say when they would complete such integration.” – CIO magazine, citing a study conducted by Bloor Research

The answer is clear! Speedy and effective post-merger integration is the key to post-merger success. Beacon Integration’s post-merger integration and technology assessment experts have executed the complete integration and standardization of some of the largest and most complex technical environments in existence in less than eighteen months. Imagine what we can do for you.

Beacon Integration is currently accepting a limited number of engagements with select clients for our IT Due Diligence, Post-merger Integration & Divestiture Services, as well as our M&A Technology Workshops. Learn more about the Services We Offer or Contact Us for a private consultation to determine which of our services will best meet your requirements.