Why do most mergers fail to live up to expectations? Is it the finances or the technology? Rarely. Is it the overly ambitious strategy of executives? Occasionally. Mostly, it is poor execution of the actual combining of the companies involved. Merger failures usually revolve around people issues — loss of key staff, culture clash, FUD: fear-uncertainty-doubt, and last but not least, poor communication and interaction between employees of the merging organizations. Many of these issues are also faced by companies participating in joint ventures, strategic alliances and M&A.
Why do most mergers fail to live up to expectations? Is it the finances or the technology? Rarely. Is it the overly ambitious strategy of executives? Occasionally. Mostly, it is poor execution of the actual combining of the companies involved. Merger failures usually revolve around people issues — loss of key staff, culture clash, FUD: fear-uncertainty-doubt, and last but not least, poor communication and interaction between employees of the merging organizations. Many of these issues are also faced by companies participating in joint ventures, strategic alliances and M&A.