Mergers and acquisitions hold promise for owners and investors of combinatorial synergies to reduce costs, increase profit, extend market and product coverage, as well as accelerate innovation.
2020 has been a banner year for mergers and acquisitions, with 5500 deals so far. This record volume may be partially due to the Covid-19 outbreak forcing the liquidation or disposal of underperforming non-core or struggling investments. However, mergers come with a great deal of risk as reflected in failure rates that are reported to be between 40% and 70%.
Despite best-laid plans and executive oversight, human factors present the greatest risk and sales-force integration is the toughest merger issue to overcome.
