Acquisitions are a common growth strategy for many organizations today. But it’s a path strewn with nasty landmines: politics, distraction, talent drain, customer confusion and execution failures. Knowing where these landmines lay is the first step in reducing the M&A risk and ensuring your deal adds performance and value rather than destroying it. Here are five places where a misstep can spell disaster along the M&A path.
For most private-equity sponsors, rebranding a portfolio company isn’t particularly high on the list of priorities. But by punting on a rebrand, sponsors are missing a prime opportunity to capture additional performance and value. Done properly, the recasting of a company’s brand can drive employee alignment, new levels of operational performance and higher valuations on exit.