Episode 11: The One About M&A
from Consultants Saying Things Hosted by Chris Lockhart
As companies navigate mergers or acquisitions they invariably run up against sticky post-merger problems that often prevent them from realizing their potential. Here are 6 things to consider when thinking about M&A. We Discuss: What are the major areas prone to M&A failure? (Hint: Security) Why do so many deals fail? - What role does technology play in M&A failure rates? What is the impact of culture on deals that work out great? What can consultants do when working M&A to help ensure good outcomes? 6 Takeaways: Legacy technical debt, like outdated systems and programming languages, can necessitate more IT consolidation post-merger (26:47). Effective security in M&A scenarios requires broad organizational maturity as most business leaders don't understand security implications (32:52). The business drives M&A decisions based on strategic goals, not to acquire IT systems, so technology enablement should align to business needs (33:36). Cultural alignment and change management are critical for integration success but often overlooked in M&A planning (35:25). Customer impacts from the merger like billing changes need consideration in addition to internal system transitions (37:57). There are often unknown cultural nuances in an acquired company that must be learned in M&A before full value realization (39:42).
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