As another M&A wave begins: three keys to success

Galpin, Timothy J.

PurposeAs the Covid-19 crisis recedes, struggling firms will be bought by bargain hunters and suffering industries will consolidate, giving rise to another wave of M&A transactions. But buyers beware! There is ample evidence that M&A creates significant post-deal performance issues for acquiring “buy-side” firms.Design/methodology/approachNew research shows that effectively managing three processes of acquisitions can have an outsized beneficial impact on M&A success.FindingsRecent research has identified three mission-critical tasks that stand out as being vital to creating M&A success: Process 1: Accurately valuing targets. Process 2: Proficiently managing post-merger integration. Process 3: Skillfully addressing the “big-three human factors” of M&A.Practical implicationsRobust talent retention and re-recruitment plans initially entail identifying key talent, defined as individuals and groups who are essential to retain and re-recruit during a transitionary period and those required for long-term value creation.Originality/valueThe articles describes best practices for post-deal M&A activities companies could perform better including operations and technology integration, communication, cultural analysis and integration, talent management and retention, senior leadership involvement and measurement and reporting.