M+A: HR Due Diligence, Deal Synergy
According to recent research by McKinsey, the vast majority of M+A activity does not achieve the intended value add.
There are two requirements for successful M+A:
Making the deal based on realistic understanding of the existing situation and what is possible.
A clear, post deal process for driving the right synergies.
Here are some key factors affecting these results:
Informal relationships are often ignored.
Quality of the people and leadership is not evaluated as an asset or priced in.
The need for a full communication and engagement strategy is not prioritised so as to build mutual trust.