M&A does not fail at closing.
It fails much earlier—at the point of decision.
In board discussions, the strategic rationale for a transaction is often well articulated. What is less clear is the downside: what would make the deal a poor decision, how integration realities will unfold, and where risks are being consciously accepted.
Let’s face it: everyone loves making deals. It is easy to accept a growth story; the due diligence, the impartial view of risks that may put a damper on the opportunity party.
When the board has not explicitly defined the risks it is taking on—and the conditions that would require a change in course—the decision remains fragile.
Approval of the deal can create some excitement, and a sense of alignment. It often masks the opposite.
The issue is not the deal itself. It is the absence of shared clarity around what sits beneath it.
Where do you see M&A decisions lose discipline most often?
Written by Lesley Antoun
Lesley Antoun advises C-suite executives and boards on strategy, alignment, and decision-making in complex, high-stakes environments.