Maximize Acquisition Success: Leverage External Experts

In today’s dynamic business landscape, acquisitions have become a powerful tool for companies seeking transformation, growth, and competitive advantage. According to a recent report by PwC, the global M&A market saw a remarkable rebound in 2021, with deal values reaching $5.1 trillion – an astonishing 57% increase from 2020. However, amidst this surge in activity, the harsh reality remains: a staggering 70% to 90% of acquisitions fail to deliver the anticipated benefits, as reported by Harvard Business Review.

The stakes are high, and the challenges are numerous. Cultural misalignment, lack of strategic fit, poor integration planning, overestimated synergies, and communication breakdowns are just a few of the pitfalls that can derail even the most promising acquisitions. Deloitte’s survey reveals that 30% of executives attribute deal failure to cultural issues, while McKinsey’s research shows that only 23% of acquisitions create value due to strategic misalignment. Bain & Company emphasizes the importance of detailed integration plans, and KPMG’s study highlights that 83% of mergers fail to boost shareholder returns due to overestimated synergies.

To navigate this complex landscape and ensure that your acquisition delivers on its business case while keeping key talent engaged and ensuring smooth integration, partnering with experienced external experts is a proven strategy for success. As a seasoned professional with a track record of driving successful integrations, I bring the objectivity, specialized skills, and focused attention necessary to help your organization achieve its strategic objectives.

Industry data consistently reinforces the value of external expertise in acquisition success:

• A study by the International Association of Outsourcing Professionals found that companies that engage external experts for M&A support achieve, on average, 20% higher returns compared to those that rely solely on internal resources.
• Research by the Management Consultancies Association reveals that organizations that partner with external consultants for post-merger integration realize synergies 25% faster than those that don’t.
• A report by the Institute for Mergers, Acquisitions and Alliances highlights that companies that allocate 5% or more of the deal value to integration planning and execution, often through external support, are 40% more likely to achieve their stated objectives.

Real-World Success Story: Building WEB.COM

One of the most significant projects I led involved merging two distinct companies to build WEB.COM. One company had been built entirely organically, while the other was an integrated group of 12 acquisitions. This complex merger presented numerous challenges, but by addressing the common pitfalls and implementing strategic solutions, we successfully integrated these entities into a thriving organization.

Challenges and Solutions:

1. Cultural Misalignment: We faced significant cultural differences between the organically grown company and the acquisition-based entity. To address this, we conducted extensive cultural assessments and facilitated workshops to align the organizational cultures. This process involved creating a shared vision and values that resonated with employees from both backgrounds.
2. Strategic Fit: Ensuring strategic alignment was crucial. We revisited the strategic objectives of both companies and identified overlapping goals and complementary strengths. By doing so, we created a unified strategy that leveraged the strengths of both organizations.
3. Integration Planning: Given the scale of the merger, detailed integration planning was essential. We developed a comprehensive integration plan with clear milestones, timelines, and responsibilities. This plan included detailed communication strategies to keep all stakeholders informed and engaged.
4. Managing Synergies: We approached synergy estimation conservatively, setting realistic goals and continuously monitoring progress. This involved frequent reviews and adjustments to our integration approach to ensure we were on track to achieve our objectives.
5. Effective Communication: Communication was a top priority throughout the integration process. We implemented regular updates, town hall meetings, and feedback mechanisms to ensure transparency and address any concerns promptly.

By leveraging these strategies, we successfully integrated the two companies, resulting in WEB.COM‘s growth and success. The merger not only met but exceeded its business case, creating substantial value for the combined entity.

Conclusion: Achieve Strategic Objectives Via Successful Acquisitions

Ensuring acquisitions deliver on their business case while keeping key talent engaged and integrating people and technology smoothly requires strategic planning, detailed execution, and the right expertise. By understanding the common pitfalls and implementing proven strategies, organizations can significantly improve their chances of success. Engaging experienced external experts provides the necessary focus, skills, and objectivity to drive results, making it a valuable approach for achieving acquisition goals.

For those navigating the complex process of integration, leveraging external expertise can be the key to turning acquisition aspirations into reality. With a track record of successful integrations and a deep understanding of what drives success, my role is to help organizations achieve their strategic objectives and realize the full potential of their acquisitions.

About Ken Gavranovic

Ken Gavranovic is a seasoned executive with a distinguished track record in leading successful acquisitions and driving transformative growth. As the CEO of Actionable, Ken leverages his extensive experience, having led 1 IPO, 3 public companies, 35 M&A integrations, and 18 exits. He also managed M&A for New Relic as EVP & GM, reporting directly to the CEO. His background includes roles as CEO, CMO, CRO, CPO, and CPTO in both public and private sectors, providing him with unique insights into every facet of leadership and organizational dynamics. Ken’s hands-on approach and deep expertise make him a trusted advisor for companies seeking to achieve their strategic goals through effective acquisitions and integrations.Ac