Why some tech M&As fail to deliver value

In a recent blog post, we explored the reasons why a sizable number of M&A deals fail to complete every year. As discussed in that post, the closing of an M&A deal does not necessarily announce the success of a transaction. In fact, as high as 60% of M&A deals fail to deliver value even after a victorious closing, as an A.T. Kearney study shows. The Harvard Business Review reports that the failure rate of an M&A deal falls in the range of 70 – 90%. Extensive research has been conducted to locate the elements that are fatal to M&A deals post-closing. With the surging interest in tech M&As, people have started to look at the reasons why the high death rate has also translated to the tech industry. While numerous factors can be named, the consensus among commentators directs our attention to mistakes in post-M&A integration of culture and business. Cultural clashes Company culture is the soft metric that defines the relationship…

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