M&A Post acquisition management: Through the lens of business psychology


Statistically, most merger and acquisition (M&A) deals are unsuccessful, between 70-90% according to Forbes, with post-acquisition methodology identified as the key variable. Integrating businesses is one of the hardest business tasks and one, sometimes, identified and potentially mediated by external business psychologists trained in culture synergy. These industrial organizational psychologists are well-verves in methodologies to identify nuances of every artifact and its potential impact on business outcomes: consider the analogy of identifying known disease symptomology and appreciating how to implement immediate interventions for stakeholder efficacy.

What M&A activities are identified in empirical literature as potential deal pitfalls and how can seasoned resources achieve cost and revenue synergies:

1.     Improve due diligence

2.     Consider and address the psychological impacts of M&A activity on both businesses

3.     Build society managers

4.     Address market sector penetration strategies

5.     Ensure supply chain focus

6.     Create innovative product launch plans for acquisitions

7.     Facilitate acquisition unveiling with finesse (address integration initiatives, and risks with availability plans)

8.     Ensure plans and timing of sales force realignment

9.     Address risk mitigations and formulate corresponding plans

10.  Prioritize these time sensitive initiatives

References

Angwin, D. N., & Meadows, M. (2015). New integration strategies for post-acquisition  management. Long Range Planning48(4), 235-251.

Bauer, F., & Friesl, M. (2024). Synergy evaluation in mergers and acquisitions: an attention‐ based view. Journal of Management Studies61(1), 37-68.

Brandenburg, M., Warasthe, R., & Seuring, S. (2024). Impact pathways: improving supply chain sustainability by due diligence acts? Insights from a German case. International journal of operations & production management44(4), 859-874.

Cartwright, S., & Cooper, C. L. (2024). The psychological impact of merger and acquisition on the individual: A study of building society managers. In Managerial, Occupational and Organizational Stress Research (pp. 429-450). Routledge.

Delgado, J. P., Gomes, E., & Neves, P. (2023). Micro-Foundations in mergers and acquisitions research: Exploring the case of emotions. In Advances in Mergers and Acquisitions (pp. 155-177). Emerald Publishing Limited.

Renneboog, L., & Vansteenkiste, C. (2019). Failure and success in mergers and acquisitions. Journal of Corporate Finance58, 650-699.

Rybnicek, R., Plakolm, J., & Baumgartner, L. (2020). Risks in public–private partnerships: A systematic literature review of risk factors, their impact and risk mitigation strategies. Public Performance & Management Review43(5), 1174-1208.

Klok (2022).The Role of Emotions During Mergers & Acquisitions. Wiley. https://doi.org/10.1111/ijmr.12322


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