Tag: M&A

How hybrid working has complicated mergers & acquisitions

Up to 90% of business acquisitions don’t achieve the expected value or benefits. The principal reason for this failure is that integrating groups is notoriously challenging – and even more so now, with many organizations shifting to hybrid working strategies. 

Global deal-making activities hit a record $6 trillion last year. And yet, while employees are the most critical asset of most companies, they often get neglected in the excitement of an M&A.

The age-old M&A model typically involved the employees of one company leaving their offices, to join those of their new employer. But with today’s hybrid and flexible working setups, that looks very different. And adds new complexity to the long-term challenge of successful cultural integration.

Organic opportunities for new colleagues to connect are likely to be missed thanks to the move to hybrid working. So what could – and should – be done?

This article was first published on DigiDay’s future-of-work platform, WorkLife, in August 2022 – to read the complete piece, please click HERE.

WTF is Tropicalization?

The purest distillation of Darwinism is “evolve or die.” And following the acceleration of trends spurred by the coronavirus crisis, most business leaders have realized they must lasso and partner with specialists all over the planet to survive and thrive in the post-pandemic world.

Little wonder the value of the average merger and acquisition (M&A) deal in 2021 for the 10 highest deals in the U.K. was £3.3 billion ($3.9 billion), according to Office for National Statistics data — over five times more than the previous year’s £600,000 ($716,000). In the U.S., the value of M&A deals amounted to roughly $212 billion in December 2021, with the acquisition of Time Warner by America Online deemed the largest all-time M&A deal in the U.S. in 2022, according to Statista. And globally, M&A volumes hit a record $5.9 trillion, up 62% on the 2020 figure, Dealogic data showed.

While transformation is necessary for growth, few welcome it. Change management is essential for the success — or failure — of the merging of companies. If not handled with sensitivity, a clash of ways of working and cultures can be toxic. For this reason, the word “tropicalization” is increasingly being used in business circles.

This article was first published on DigiDay’s future-of-work platform, WorkLife, in July 2022 – to read the complete piece, please click HERE.