AOL & Time Warner (2001) — $65 billion loss.
Daimler-Benz & Chrysler (1998) — $36 billion loss.
Google & Motorola (2012) — $12.5 billion loss.
These behemoths all failed when trying to integrate.
There are many reasons, but the biggest one is because they tried to run their integration like they ran their business. With 70-90% of integrations flat out failing, you can’t follow what you’ve always done.
An integration is not like running a business — integrations are temporary, timebound, and extremely flexible.
Running your M&A integration like a business causes your customers to flock to your competitors in search of better service. Senior leaders and top talent have no choice but to leave. And you destroy any chance of receiving a positive return on your investment. In fact, you could leave the company worse off then if you did nothing — like with the previous examples.
So, how do we avoid wasting millions of dollars — and destroying the company?
In today’s episode, I reveal the “Three Legged Stool” approach to enhance the odds of your M&A integration succeeding by a factor of 10:1. I also share why having Elon Musk or Jeff Bezos on your team isn’t the answer to a profitable M&A.
Show Highlights Include:
- Why hiring your senior leaders (or project managers) to run your integration are both fundamentally wrong (1:39)
- How 12 week due diligence periods ethically blind you to glaring—and obvious—red flags about a business you want to acquire (7:34)
- Why integrations that don’t focus on rigidity can actually sabotage your business (8:56)
- How to enhance the odds of your M&A integration succeeding by a factor of 10:1 with the “3 Legged Stool” approach (11:22)