Why Mergers and Acquisitions Fail and How to Avoid Failure


Mergers and Acquisitions involve a complicated process that is not always successful. Many mergers and acquisitions fail for reasons that are easily avoidable. The following are common problems to avoid during the mergers and acquisition process.

1. Neglecting regular business while the mergers and acquisitions process is underway

2. Poor post-closing management of acquired company

3. Lack of planning and clearly defined terms

Thankfully there are simple ways to avoid these common problems. Oftentimes a business owner becomes overwhelmed with the work involved in the mergers and acquisitions process, and finds it difficult to manage running the business at the same time. This is when it becomes important to bring in a mergers and acquisitions intermediary to aid into the process. It removes stress from the business owner and assures them that the intermediary will provide accurate information and create realistic goals.

In order to smoothly connect with the acquired company, gathering constant input from employees post-closing will help facilitate the necessary changes. Be prepared to be flexible during the transition process in order to keep employees happy and to gain their respect.

Organization is one of the most important qualities to have during the mergers and acquisitions process. This will save on time for both the buyer and seller and prevent a messy fallout. If you have any questions about the M&A process, contact George & Company, the region's premier business brokerage firm.