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WORDS OF WISDOM
"The success or failure of a transaction can often be predicated on steps taken in the first 60 days."
- IM2 Consulting |
Top 16 Pitfalls in Mergers & Aquisitions
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Phase 1
Pre-Deal, Due Diligence and Mobilization |
| Mobilize process & teams for candidate selection, due diligence, and integration. |
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Common Pitfalls 1. Poorly Defined Strategy, Goals,
and Vision
2. Incomplete definition of business
model
3. Communication Lacking Content
4. Obsessive Focus on
Organizational Charts
5. Stacking the Incentive Plan
6. Merging Cultures Gradually |
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Phase 2
Project Planning
- Integration |
| Planning, integration team mobilized, PMO creation, requirements gathering, project’s definition, evaluation and resource management. |
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Common Pitfalls 7. Lack of Ownership for integration
and synergies
8. Organization and Integration
plans
not aligned with business
9. Insufficient focus on speed of
integration
10. Obsessive List Making
11. Creating a Planning Circus
12. “Cherry-picking” of Systems |
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Phase 3
Program Focus
- Integration |
| Shift to planning and work tasks focused on program-wide deliverables (e.g. Dress Rehearsal, Readiness and Cutover). |
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Common Pitfalls 13. Unfocused Efforts for Risk
Mitigation and Performance
Tracking
14. Lack of Standardization and
Prioritization for Cutover |
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Phase 4
Post
Change-of-Control |
| Conversion, stabilization, risk/performance Monitoring, Post-Change of Control, and Synergy Optimization. |
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Common Pitfalls 15. Assumption that a Merger of
Equals Can Exist; Allowing Co-
Systems to Exist
16. Belief that Synergies Will Result
on Their Own |
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