M&A Integration
Mergers and acquisitions are often strategic moves for organizations pursuing growth of capabilities, market reach, and positioning. But studies show that an average of 70% to 90% of merger and acquisition deals fail, primarily due to post-deal integration failures. And a study across 200 deals revealed that a mere 14% achieved successful integration across strategic, operational and financial measures.
FlexPoint experts have invested the time, experience, and grit working with clients after deal close to guide a successful integration across strategy, operations, technology, and people to protect and ensure our clients’ M&A pursuits realized their value.
Based on this experience, we’ve identified key elements of success and embedded them in our M&A Integration frameworks, below. Our goal is to avoid blind spots and protect deal value through effective integration.
A lot of effort typically goes into the consideration, due diligence, and commercial aspects of mergers and acquisitions, but the integration phase after deal close can be underestimated in its complexity and duration. Integration can include everything from employee resistance to leadership attrition, from duplicative processes to fragmented technology, and from operational oversights to cultural clashes.
The tip of the iceberg in M&A is the shiny allure of growth and synergies; but beneath the (often murky) waters are the tangled challenges of aligning people, processes, technologies, and strategies.
The challenge of M&A integration impacts everyone in an organization, but the pain and pressure is especially felt by the leaders tasked with the tall order of joining two previously separate organizations. In a study of a decade of large deals across 2,000 companies, executives indicated that post-close integration was the most difficult phase of a deal. In the same study, 60% of M&A practitioners indicated that in hindsight, they wished they had spent more resources on culture and change. A clear takeaway across decades of M&A experience indicates that integration requires a holistic balance across the technical aspects of technology and operations, the functional aspects of culture and people, and an ability to strategize for the future and also implement practically in real-time.
Other consulting firms specialize in the pre-deal aspects of M&A; FlexPoint works with clients to realize the deal’s intended value, now and in the years to come.
FlexPoint’s proven experience in completing M&A integrations with clients ensures that post-close, organizational change transitions smoothly, employees remain engaged, customers stay loyal, and the transformed organization is positioned for long-term success. One of our differentiating strengths in M&A integration is prioritizing the people function while delivering integration results. We take a holistic approach, blending strategy with change management to ensure that cultural alignment, leadership effectiveness, and operational and technological integration work in tandem.
“FlexPoint has been a game-changer for us in terms of change management and communications during this merger.”
— Client HR Leader
“The FlexPoint team did an excellent job ensuring our Day 1 cutover of processes and systems went smoothly. Thank you!”
— Client VP of Corporate Development
Our M&A integration capabilities include:
Organizational Change Management
Operational Process Mapping & Integration
Technology Platform Integration, Modernization & Transformation
Integration Roadmap, Execution Planning & Management
Our proven partnership and expertise in successful M&A integrations ensures:
Employees from both organizations feel heard, valued, and engaged
Leadership is aligned with a clear vision for the combined entity
Processes and structures are optimized without disrupting productivity
Customers experience continuity and strengthened relationships
Click on the graphic to read this client success story
The punchlist from deal discussions through close and well beyond can see endless. So, we’ve identified the critical activities to prioritize throughout the process, illustrated below and downloadable here. They’re separated by focus area — people, process, and technology — because each deal differs in its mix and intensity. Include the area(s) you need, potentially repeat several steps (like Design & Planning, Build & Testing for multiple technology solutions being updated), and include key milestones for your particular deal.
Org Structure & Operating Model
The organizational changes in a merger or acquisition can vary in complexity (from adding one team as a division of the other and otherwise leaving the structure intact to creating a new structure to highlight each teams’ strengths), urgency, and impact. But even what seems simple from an execution perspective has an outsized impact on team members in an integration. So, pay close attention to how team members on both sides of the deal respond to decisions and breaking news — knowing that silence is communication, too.
Processes
Business process integration is one of the most critical levers for value creation in a merger or acquisition. Whether harmonizing similar workflows or redesigning end-to-end processes, integration requires balancing speed, precision, and frontline input. Small differences in how teams operate can create downstream issues if left unaddressed, making it essential to keep both efficiency and adoption in focus.
Technology Systems
Systems sit at the center of modern businesses, and their integration can make or break an integration. Whether consolidating ERPs, aligning infrastructure, or migrating data, the goal is to support the business with scalable, secure, and user-ready solutions.
Tech integration must balance business continuity with transformation, ensuring the combined entity has the tools to move forward without creating bottlenecks for the people or processes of the organization.
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