Professor Clayton M. Christensen (et al.) states in Harvard Business Review that “Study after study puts the failure rate of mergers and acquisitions somewhere between 70 % and 90 %”. However, this doesn’t undertake the fact that corporate performance has potential to shoot sky high through successful M&As. We at Montell & Partners have the experience of successfully working with M&A and integrations for over 15 years in Europe, Asia and Africa with great results, meaning that targets have been reached and/or exceeded. 

By following three logic steps the success of the integration will be within your control at the same time as risks are minimized:

1. Start by clearly defining the wanted long-term position
It may sound strange, but in the early stages of M&A it’s common to find that the wanted long-term position is unclear and undefined. Make sure to define, secure and anchor the wanted position and establish a detailed business case within the organization.

2. Use the negotiation phase to validate and agree on wanted position, goals and future organization
Include wanted position in Sales Purchase Agreement and utilize success fees connected to the outcome.

3. Perform a strategic due diligence and use this phase to develop a first draft on the business plan, including integration activities
Perform a strategic due diligence and thereby reduce risks of failing in a later stage. By anchoring the joint future business plan with existing organization, it can be aligned with the wanted position before signed contract, which saves valuable time.