Beyond M&A

    Where we disagree

    Twelve things said in deal rooms that are simply not true.

    Every one of these has been said to us, usually with confidence, often by someone senior. Here is what we say back. We are the Merger Synchronisation Builders: we synchronise the merger before it is signed, then run it, so we get to see which of these beliefs survive contact with an integration.

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    01 The myth

    80% of M&A deals fail.

    So common, and never once proven. Prove it.

    • If it were true, why the hell would anyone do this?
    • Fear sells, but you would not have a career in M&A if the number held up.
    • Pessimism sounds clever in a meeting. Optimism, costed properly, wins the deal.

    02 The myth

    1 + 1 = 3. Merging two companies produces greater value.

    For the first year it is nearer 1 + 1 = 0.9, because the staff are distracted.

    • Two good businesses merged can mean zero extra value for the customer.
    • What looks good on paper does not translate into human activity.
    • The firms writing that formula have never run a small business through an integration.

    03 The myth

    It is an obvious done deal.

    The only thing that is obvious is the distraction.

    • Certainty and expertise breed complacency.
    • Complacency takes your eye off the deal, and off the value.

    04 The myth

    You must integrate the target into the buyer's firm.

    Why? Where is the value? Answer that before anyone touches the thing you bought.

    • The firm ran perfectly well standalone, which is the reason you wanted it.
    • Integrate it badly and you will destroy it, without a doubt.
    • Bolt on your governance, rules and controls and it will move slower than you do.

    05 The myth

    Smaller companies are more modern than larger ones.

    Size is not the variable. Rhythm is.

    • There are pioneering large firms that will outpace you, shipping changes daily.
    • Plenty of small firms are running a decade-old estate held together by one person.

    06 The myth

    Who wouldn't want to merge with us?

    Ego will kill the deal.

    • Anyone who is not culturally similar to you, for a start.
    • Would you want to work for the last owner who said that out loud?
    • Mergers only win with humility at the core.

    07 The myth

    Smaller deals are easy to integrate.

    Smaller budget, less resource, the same complexity. That is harder, not easier.

    • Smaller firms are often not safe to integrate. Security debt arrives with them.
    • Their people wear many hats. Where exactly do those hats fit in your structure?
    • Founders tend to leave, handing the keys to managers who have never driven the car.

    08 The myth

    Bigger deals produce bigger returns.

    Not if the selling entity is large, slow and bureaucratic.

    • Read the list of mega-deal failures: culture clash and management churn, every time.
    • Assuming customer behaviour stays the same at scale is complacency with a spreadsheet.

    09 The myth

    As long as the P&L is good, everything else will fit in.

    The P&L can be fabricated. Operations cannot.

    • The numbers may work in the boardroom while the operational complexity underneath scares you.
    • Ask the acquirers who bought a business on its accounts and found nothing behind them.

    10 The myth

    We are in a good state to buy other firms. We have the money.

    Money is the easy part. Your organisation is the hard part.

    • Unless you have a recent track record, do not be presumptuous.
    • Your culture and your bedside manner are nowhere near ready for another team yet.

    11 The myth

    We need an AI-first approach to the deal.

    AI will quietly become 'tech' again, and the merger will still be about people.

    • AI inside a deal is political, an unknown frontier, and nothing like a merger.
    • Used to avoid the human work, it wastes months.
    • We assess and cost it inside diligence and integration. We do not sell it on its own.

    12 The myth

    Merger synchronisation is a bottom-up financial exercise.

    It is a top-down vision, then cultural alignment, then the numbers.

    • Financials may look good. Do not assume that translates into operational success.
    • Run it upwards from the accounts and you will waste months.
    • Keeping the accountants happy will not keep your staff happy.

    Our rallying cry

    Every deal should be easier than the last.

    Disagree with any of the above? Good. That is a better first conversation than a pitch.

    Argue with us Questions answered