Post Merger Integration Survey 2009: European results - Media release
As the future of transactions focuses more on value creation, executives' attention will be turned primarily to early planning for organisational alignment of the joint business according to PricewaterhouseCoopers.
PricewaterhouseCoopers conducted a survey of more than 250 top executives from eight European countries, who worked on post merger integration projects within the last three years. Of the 250 leaders surveyed, 40% believed that the cost of the integration was significantly higher than anticipated. 62% would have preferred a more rapid integration in order to reduce costs and alleviate uncertainty.
Due diligence has become standard. On 81% of these transactions, some form of due diligence was conducted, however the relevance of these findings post deal could have been improved by an increased focus on operational and commercial aspects pre deal.
The study also revealed that almost 70% of companies planned integration activities well before the close, though many cited significant challenges managing communications and organisational change. According to respondents, the biggest challenge of closing the deal was to align the different cultures. Other challenges mentioned were the integration of IT systems and maintaining the motivation of employees.
Noteworthy is the significant decline in active participation of the Board after the transaction. Only 59% of the drivers were still actively involved in the integration. Communications with leadership were generally regarded as successful, but messaging and direction to other stakeholders such as employees, customers, and suppliers fell quite short, especially in the crucial period of the first one hundred days.
Whilst the number of mergers and acquisitions in Europe decreased significantly in this time period, we believe the intent of future integration projects will shift from growth to efficiency, having strong consolidation and restructuring components. The focus will shift to:
About the survey
- Value enhancement instead of increased company growth
- Robust and well controlled transition from the due diligence phase to the integration, ensuring that all relevant due diligence findings are captured and addressed
- Rapid transformation with regard to change management issues and efficient communication
About PricewaterhouseCoopers - Globally
- The study took place in the first months of 2009 and expanded in 8 European countries. The respondents are active in all sectors of industry and government and semi-public. The report "Post Merger Integration Survey 2009" can be downloaded from www.pwc.nl.
- For more information please contact:
Dr. Ralf C. Schlaepfer, Phone: +41 58 792 1620
Annemieke Hoekstra, Phone: +31 20 568 7117
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