Importance of Human Touch in M&A Success

Importance of Human Touch in M&A Success
Empathy fosters a climate of trust and cooperation which could be the most positive driver to success in a M&A.

Mergers and acquisitions (M&A) have evolved as transformative vehicles that propel organizational success by opening up unmatched prospects for inorganic growth in today’s fast-paced corporate environment. The strategic move of M&A has evolved into a catalyst, driving businesses towards innovation, expansion, and creating a level of synergy that surpasses the individual capabilities of lone organizations as they strive for competitive advantage. As per the Bain and Company, M&A Mid-Year Report 2023, the average M&A deal value in 2023 is estimated to be around 2.7 trillion dollars1.

Despite their lucrativeness, M&As could be tricky. Kison Patel, the founder and CEO of DealRoom blogged about billion dollar deals which have failed such as the Daimler-Chrysler merger ($36 billion, 1998) or the America Online and Time Warner deal ($65 billion, 2001)2. Kenny (2020) states in his article in Harvard Business Review that 70%-90% of acquisitions fail due to integration issues3. In 2021, Bain and Company surveyed 281 M&A practitioners world-wide to find...

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I Ruchita

is a second year student in the MBA- HRM program in the School of Human Resource Management, XIM University, Odisha

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Author

I Ruchita

is a second year student in the MBA- HRM program in the School of Human Resource Management, XIM University, Odisha

Dr. Subhra Pattnaik

is an Associate Professor.

December 2024

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