People Issues harm M&As
I had an interesting talk with a business friend of mine a couple of days ago
I shared with him some statistics that I had discovered
Following an M&A:
- 75% of M&As deliver the results expected
- Productivity drops 50% over the following four to eight months
- 50% of the top talent will leave within twelve months
- The stock price rises only 30% of the time
- Employee engagement falls by 40%
So the question needs to be asked; “Why do businesses do it?”
The answer is generally to expand into new product areas, accelerate growth in new regions, acquire technology, processes or people.
The reason that so few M&As deliver what is expected is, in my experience, because risk analysis isn’t made of the people issues.
It’s people issues that have the capacity to derail an otherwise potentially beneficial M&A.
Those businesses that do consider the people issues at a very early stage tend to be the ones that deliver most, if not all, of their expectations.
If you would like a free paper of this topic please email me at:
stephen@assimilating-talent.com