Many M&A projects prove to be unsuccessful in hindsight, and fail to achieve ROI targets. Surveys and scientific studies rate the percentage of unsuccessful acquisitions anywhere between 50 and 80%.
PwC have surveyed 260 deals of various sizes across different industries, and found that those deal makers who
- implemented a strong project governance (93%),
- completed the PMI project in the defined time frame (71%),
were the the most likely ones to reach their synergy and ROI targets.
In the group of unsuccessful projects, insufficient or wrong qualification of internal resources has been identified as the top PMI issue (75% oft he respondents).
This is yet another indicator that structured PMI expert management will increase the odds for making an acquisition value-added. In many cases, deal success will easily compensate the cost of hiring an external PMI manager.
Problem remains: Many businesses overestimate their capabilities of getting the job done, and the shareholder pays for it.
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#interim #PMI #Post-merger Integration
Published on LinkedIn