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

 

 

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The question on salary

Another difficult question at the interview is the one on salary.

“What are you expecting as a salary” is difficult because if you pitch your answer too low then that’s what you get and if it’s too high you might lose the job.

This clip looks at what you could say if salary is mentioned by the interviewer.

Also remember that there’s a book on “negotiating for what you want” on the website at www.assimilating-talent.com that includes a section on negotiating for a salary increase.

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