Most M&A deals look great on paper, but can fail because too little attention has been paid to the strategic and practical details. Common mistakes include:
– Insufficient management capacity for the new business
– Incompatible working practices and culture
– Underestimating the cost of integrating procedures, IT systems and staffing structures
– Failure to ensure enough working capital to operate the target company successfully – including the servicing of debts
– Overestimating the potential for improved efficiencies of the combined business
– High turnover of staff due to the stress and uncertainty of the M&A process, meaning a loss of valuable experience and skills
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