Common Knowledge, Uncommon Practice: The People Factor in Mergers & Acquisitions
White Paper
Written by Knowlagent
Corporate mergers and acquisitions unfortunately fail more often than they succeed, as measured by the ability to achieve stated objectives and anticipated benefits. Research into the reasons for such high rates of failure reveals that first and foremost, management of the "people issues" is most critical to success. High-impact communication during a merger can win trust, build commitment and keep employees focused on the job. To avoid customer loyalty issues and lost revenue, as well as to realize anticipated cost savings from consolidation of staff and administrative functions, merging companies must ensure that customer-facing employees are equipped, motivated, and directed to focus on the customer. This paper addresses these employee-related issues to helps ensure M&A success and minimize negative impacts on customers.
