Mergers and acquisitions are transforming industries and have become an essential element of corporate strategy.
Yet fewer than half of all mergers succeed. Booz & Company’s extensive research shows that more mergers fail due to inadequacies in the integration process rather than to any fundamental failure of strategic concept.
Time is often the determining factor. Unnecessary delays between a transaction’s announcement and its consummation—the point at which it realizes the projected economies of scale and theoretical strengths of the combined organizations—can decimate a merger’s value, triggering an exodus by employees, suppliers, customers, and investors from which the combined company may never recover.
Leveraging the network
In working to integrate the one of the world’s largest oil companies, Booz & Company uses a process that leverages the Internet to rapidly implement a universal platform and user interface for data sharing. By collecting and processing data and sharing information from far-flung locations, two companies can dramatically accelerate a merger’s consummation.
The process is facilitated by Booz & Company to compile and analyze data prior to regulatory approval, when the two companies cannot share certain information. This effort enables better, faster strategic and operational decisions once the transaction closes.
The Booz & Company difference
But effective information sharing alone will not make a merger succeed. In a myriad of ways, Booz & Company helps clients capture more value with less risk and with the appropriate tempo. We use our depth of strategic experience to prepare the new company to compete in the future, creating step-level change within the company so that it can drive its industry forward.
We help clients to master both the necessary mechanics and the strategic leadership challenge. Our unique assets and capabilities include: