Success and failure factors in post-acquisition / post-merger integration

Abstract

The complexities of integrating companies, through mergers or acquisitions, are immense and challenging for the leaders involved in the process who are responsible not only for the integration but also for the attainment of the intended objectives. The implications has the potential for far reaching consequences for the leaders themselves, shareholders and employees. However, as much as half of mergers and acquisitions concluded fail to achieve their stated objectives (Stahl, 2004; Bijlsma-Frankema, 2004; Deutch & West, 2010; Sher, 2012). The purpose of this exploratory research study is to establish how the success rate of these mergers and acquisitions could be improved. The focus of the research is on the post-merger / post-acquisition integration process which should not only ensure that the financial objectives of the integrated entity are met but also to ensure the retainment of critical talent. The role leadership plays in the process will also be looked into as leaders play a pivotal role in establishing organisational cultures and therefore accountable for the success / failure of the post-merger integration process. A practical post integration application model will be developed to aid the improvement of the success rate of future post-merger / acquisition integrations.