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 Planning, 48(4), 235-251.
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 management, 44(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 Finance, 58,
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 Review, 43(5), 1174-1208.
Klok (2022).The Role of Emotions During Mergers & Acquisitions. Wiley. https://doi.org/10.1111/ijmr.12322

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