Mastering M&A the hard way: Lessons from failed deals

14 December 2017

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It is little secret among decision-makers at corporations and private equity firms that M&A deals don’t always succeed after closing. Given the complexity of combining two independent entities, overcoming cultural as well as language barriers, synthesizing redundant systems and more, the chance of a deal failing or leading to a negative outcome can be considerable.

In order to understand exactly how and why some M&A deals fail to live up to initial expectations, as well as the lessons that can be learned from them, Toppan Vintage commissioned Mergermarket to interview global dealmakers for their insights.  

Key findings include:

  • 91% of respondents who had done failed cross-border deals said the international nature of them contributed to the failure.
  • 70% of respondents said that a lack of compatibility between management teams contributed to the failure of deals they had been involved with.
  • A majority of respondents (56%) believe there will be an increase in failed deals over the next three years, largely due to growing regulatory hurdles (50%), geopolitical uncertainty (40%), and misguided technology acquisitions (34%).