70% to 90% of all acquisitions fail to achieve the results acquirers want. Why? Most often, failure is directly tied to the integration plan and frequently, to diligence that wasn’t quite as effective as it could be.
According to a 2015 industry study by McKinsey & Company, companies with the best M&A results have strong capabilities in post-close integration. As a consulting firm, we’ve found that high performing M&A firms use the diligence exercise to gain critical insight into the target company, its management, key employees, its culture, and its customer relationships. They take a hard look at not only the financial numbers, but at the intangible assets that drive a company’s success plan.
The worldwide NPS conversation is evolving — from simply measuring one’s score to actually doing something about it. NPS cheerleaders are increasingly focused on what it takes to raise their scores. They’re also asking how to benchmark, set targets, and monitor improvements. Strategex has been incorporating NPS into our Voice of the Customer Research since the beginning — with a unique focus on Continuous Improvement processes — and we’re here to help answer those questions.
"It feels like everyone’s chasing the same deal," said one M&A executive we interviewed. With multiples still at their highest, there’s even more stress on internal teams charged with being sure the acquisition is a good one.So, why do 70% to 90% of all acquisitions fail to achieve the results acquirers want?