Busting Merger and Acquisitions Myths: 4 steps to success

Most mergers and acquisitions fail to deliver the expected results. Four myths are largely to blame: the belief that it must be a merger of equals, that synergies will come quickly and easily, that conducting due diligence will be enough, and that full integration is necessary.

In reality, both parties in the M&A process need to develop a shared understanding of their future (and not necessarily of their shared future). Based on our research findings, we suggest companies select, secure, search, and match.

Let’s look at each requirement in turn:

1 – Select

You should set priorities on capability building/strengthening (capability expansion). Amazon, for example, is adept at acquiring targeted capabilities, including Zappos for shoes, Audible for audiobooks, Whole Foods for high-end natural foods, Metro-Goldwyn-Mayer for its film library, and iRobot for its Roomba remote vacuum cleaners.

2 – Secure

It’s vital to ensure continuity over elusive synergies (continuity…