Article: The 'X' Factor for Successful M&As!

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The 'X' Factor for Successful M&As!

Why do so many M&As fail due to people reasons? Lets see how the people angle might be impacting business!
The 'X' Factor for Successful M&As!
It won’t be far from the truth to say that M&As are driven largely by financials or strategies to integrate synergies of products, markets or scale. Studies however show that more than 70 percent of mergers fail to achieve their full potential, as they are unable to integrate people. Now, most mergers take into consideration the people angle and typical activities would include formal communications, town halls, aligning grades and designations and usually the top of the list, even retention bonuses for top talent! A people audit would usually be a part of the checklist, but then, why do so many M&As fail due to people reasons? Let’s take a hypothetical case to see how the people angle might be impacting business. Let’s assume that we give retention bonuses to the top 10 percent, the next 15 percent attrite due to ambiguity and the last 25 percent are made redundant to rationalize costs and headcount; we are still left with 50 percent of employees who are a ...

Topics: #MergersAndAcquisitions, Strategic HR

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