- Management egos driving the desire to run a larger and more prestigious company even though synergies aren’t there
- Lack of culture and fit; geographical differences
Integration more expensive than expected - Businesses are too fundamentally different and management does not have the expertise / capacity / focus to manage it effectively
- Synergies not realized (at all / or in insufficient time); easy to overestimate synergies, especially revenue synergies
Why do most M&A deals fail to be accretive?
Published On - March 4, 2023
