M&A Transaction Survey Results

meeting M&A Transaction Survey Results

Mergers and Acquisitions (M&A) are a primary channel to achieve corporate growth. However, M&A integration failure rates are significant. To further investigate, ModalMinds developed an M&A transaction survey to identify challenges and to help establish an understanding of how M&A integration success can be improved.
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50 executive M&A respondents were sourced from a variety of executive LinkedIn groups relating to: M&A Professionals, Harvard, Stanford, and Pepperdine University Executive Education cohorts, and Accenture Alumni.  Respondents held one to many senior level roles as identified in the bar chart above. Participating respondents had significant M&A transaction experience, with 92% of respondents being involved in 2 or more transactions and 42% of respondents involved in 11 or more transactions. Size of organizations represented was split between large, midmarket, and small business with 24%, 41%, and 35% representation respectively.

Pre Close Challenges

Survey results indicated that Integration Planning and Operations Review were the most challenging areas to address Pre-Close. We believe this is due to the complexity of these activities in the pre-close phase where time constraints are significant.

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Post Close Challenges

The greatest challenges post close related to Operations Integration and IT Integration with existing and often stretched operational staff taking on integration tasks 90% of the time. Surprisingly, a significant challenge was also the setup and execution of the Integration Management Office (IMO). This may be due to only having dedicated IMO staff 36% of the time based on our results.

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Business Results

Reported results of M&A transactions indicated that there was a 38% full success rate in meeting board level expectations, with the bulk of M&A transactions leading to sub optimal results. It should be noted that a majority of transactions did not undergo independent audits or post mortems that can better determine success rates and areas of improvement.

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Contact us and place “M&A Survey” in the subject line to receive the full survey in PDF format that includes detailed survey responses on topics:

  • How non-financial elements are best evaluated during due diligence
  • Greatest challenges faced during an M&A transaction
  • Most important factors driving M&A success
  • Optimal reporting structures for M&A integration teams
  • Other important feedback

We thank all respondents of our survey in addition to our affiliate partners: Transaction Integration Partners and Abyss Program Management.

About ModalMinds

Combining proven integration with hardened assets, ModalMinds plans and executes M&A Integration Services for Clients, mitigating risk and optimizing return on investment. ModalMinds provides small footprint, high impact teams to work with client teams in establishing repeatable processes for long term acquisition consistency. Areas of focus include: pre-close due diligence, integration planning, and post-close management with execution of People, Process, and Technology integration work streams. Contact us to learn more about how we can help you with our business transformation services.