Risk of failures in M&A are mainly due to the inherent complexity of the Mergers & Acquisitions Post Merger Integration (PMI) process.  

There are indeed many ¨technical" risks and issues, well documented already, but always specific to each deal's context. But it's often underestimated, that a major area of risks is related to a critical combination of psychological factors :

• for any company owner, even the more rational, selling the company, he or she, has built over years, is simply like giving away a part of her or him. It's always a kind of life or death decision, and the team is feeling it.

"I'm selling now, whilst not being very sure of willing this, now, like that, to these guys ..." "what i'm gonna do tomorrow ..." "what are my new goals ..."

• for any buyer, there is suddenly a huge pressure on results, quickly in the short term, for maintaining performance, and achieving the expected value creation. 

"I'm happy we closed the deal, but i'm not that sure that it will actually work, like this, with these guys..." "how far can we trust them " " how to achieve the synergies we committed to ..."

Suddenly, on deal's closing day, a whole new, exciting, unknown and sometimes dangerous path, is opening to both parties. There is an increasing pressure for integration teams, associated with heavy workload and need for clarity and prioritization.

In this context, understanding and mitigating the effects of uncertainty and anxiety is the main key.

Our 20+ years hands-on PMI experience in very demanding people-driven environments, where M&A was combined successfully with organic growth, to quickly achieve ambitious value creation goals, has forged 4 key beliefs : 

1: incorporating in the whole M&A and PMI process a much higher dose of psychology than usually, will ease a lot to align expectations and ensure a good deal execution for both parties. Based on research studies and experience, we have identified key psychological parameters to be handled during integration. For instance, the alignment of both side's implicit expectations is critical. Spending enough time at this stage, using active listening skills, will unlock the potential for next steps.

2 : focusing  on the effective realization of synergies.
Putting the synergies at the heart of the program management, by building together a "synergy and benefits tree", then translating it into concrete transformation projects and actions. This ensures that no synergy would be forgotten during the post merger integration phase.

3 : co-designing and co-piloting, together with both parties, the integration plan will keep the right level of focus. We roll out a bullet -proof integration process framework, which is adapted to the specific context. This approach will relieve managers from getting lost in the complexity of the process. It will reduce the induced stress for the managers and the teams, which is aiming at reducing risks of burnouts for everyone involved. 

4 : ensuring that we build solid foundations for the future.
Ensuring all these conditions are met during the first 3 to 6 months, and then organizing a proper transition to operations and support functions. There is much less stress, less frustration, less source of future conflicts, and therefore much less risk of failures within 3 years.