According to Harvard Business Review research, 70-90% of M&A deals fail. Poor planning and execution at all stages of the deal (the deal zone, transaction zone, and post-close zone) contribute significantly to this high failure rate.
— Harvard Business Review
Following an acquisition, long-term value creation is contingent on the first 100 days. As such, as soon as the deal closes, CXOs must be ready to hit the ground running with 100-day plans that are comprehensive, KPI-led and clearly outline a roadmap for improvements to drive profitability.
And while there is some guidance to follow, given the complex nature of these deals, very infrequently do we hear actual case studies on things that could — and have — gone wrong in the first 100 days – and how to remedy these scenarios in order to not lose momentum.
Read more: Creating a Roadmap for the First 100 Days of Leadership
Lack of Transparency: Your deep dive as CXO uncovers a different fiscal picture
Assessing a new opportunity effectively begins during the diligencing process. Failure to do your research and ask the right questions (or making too many assumptions) can lead to a number of unforeseen scenarios. Frequently, the rush to complete a deal and secure a couple of early wins can sidetrack a CXO. However, a lack of transparency during the purchasing process is likely to spill into the 100-day period and the sooner these issues can be identified and remedied, the more likely your ability to execute real transformation.
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