Merger Integration: Delivering on the Promise - Booz Allen Hamilton
Merger Integration: Delivering on the Promise - Booz Allen Hamilton
Merger Integration: Delivering on the Promise - Booz Allen Hamilton
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<str<strong>on</strong>g>Merger</str<strong>on</strong>g> <str<strong>on</strong>g>Integrati<strong>on</strong></str<strong>on</strong>g>:<br />
<str<strong>on</strong>g>Delivering</str<strong>on</strong>g> <strong>on</strong> <strong>the</strong> <strong>Promise</strong><br />
A Viewpoint by:<br />
Gerry Adolph<br />
Ian Buchanan<br />
Jennifer Hornery<br />
Bill Jacks<strong>on</strong><br />
John J<strong>on</strong>es<br />
Torbjorn Kihlstedt<br />
Gary Neils<strong>on</strong><br />
Harry Quarls<br />
Most mergers fail. Though this reality is uncomfortable,<br />
it is an indisputable fact. By whatever measure you<br />
choose — stock price, revenues, earnings, return <strong>on</strong><br />
equity — most deals fall short of expectati<strong>on</strong>s. Somewhere between<br />
<strong>the</strong> c<strong>on</strong>cept of <strong>the</strong> merger and its executi<strong>on</strong>, <strong>the</strong> promise fades.<br />
Synergies evaporate. Savings vanish. Cultures clash. And <strong>the</strong> CEO<br />
discovers <strong>the</strong> door.<br />
But why? Surely, no <strong>on</strong>e enters into a merger intending to<br />
lose shareholder value. In a few cases, <strong>the</strong> merger itself was simply<br />
ill c<strong>on</strong>ceived: <strong>the</strong> promise was never really <strong>the</strong>re to realize. In most<br />
deals, however, it is ambiguous leadership and poor executi<strong>on</strong> that<br />
prevent companies from capturing <strong>the</strong> full value of a merger.<br />
Although senior executives devote exhaustive hours to striking <strong>the</strong><br />
right deal, it is merely <strong>the</strong> beginning of <strong>the</strong> l<strong>on</strong>g and tortuous merger<br />
integrati<strong>on</strong> process. In fact, structuring a deal is relatively easy;<br />
implementing <strong>on</strong>e is nothing short of heroic.