More than two-thirds of the mergers that fail do so at the execution stage. This is actually terrific news for merging companies. The reason? Execution-related failures can be avoided.
Booz Allen Hamilton’s Gerald Adolph, Karla Elrod, and J. Neely write in HBS Working Knowledge, a Harvard Business School publication, that to avoid such failures, merging companies must establish a program integration team early in the process that can respond to the execution risks inherent in all transactions.
These risks are the "nine deadly sins" of mergers. Understanding them is a critical first step toward a successful transaction.
To read the full story, click here.
Mergers Move Into a New Era of Success: Gerald Adolph, senior vice president and head of Booz Allen Hamilton’s restructuring and integration group, explains why mergers are more successful today than they were over the past decade, when one-half to two-thirds of them failed. Adolph attributes the change to a jump in the number of consolidation deals (rather than strategic deals), better pre-merger planning, and greater oversight from key stakeholders.
To listen to Gerald Adolph's full interview, click here.