The impact of the people side of mergers and acquisitions

In today’s competitive marketplace, mergers, acquisitions and corporate restructures are some of the fastest ways to increase market share and stakeholder value.

Recently, PriceWaterHouseCoopers’ Annual Global CEO Survey reported that U.S. CEOs foresee an increase in M&A activity, with 42% anticipating a domestic acquisition.

Despite the projected growth, research shows that up to 90% of mergers and acquisitions fail.

According to a Marsh, Mercer, and Kroll survey conducted in collaboration with the Economist Intelligence Unit, the two most significant transaction issues faced today are human capital integration and organisational cultural differences.

Simply put: organisations fail to understand and effectively manage the people side of these business mergers or acquisitions.

By using workforce analytics to identify precisely the differences between cultures or teams, leaders can uncover the potential points of friction that can threaten success.

Infographic on impact of mergers and acquisitions

This image is courtesy of PI Worldwide

We’d love to hear your experiences and tips on mergers and acquisitions, leave your comments in the box below.

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