Hay Group found that just 9% of mergers
are considered completely successful, with the figure dropping to 3% of mergers
and acquisitions carried out by UK companies.
The research into more than 200 European deals completed over the past three
years, found that omissions in companies’ due diligence procedures and
post-merger integration strategies were the main causes for failure. Companies
are prioritising financial and systems due diligence at the expense of business
culture, company structure and corporate governance.
Of senior business leaders questioned, 93% said traditional due diligence was
the priority, with 55% focusing on IT systems integration. However, 70% believe
that it is too difficult to obtain intelligence of corporate culture.
Cambridge-based Frontier Developments has appointed Alex Bevis as its next finance chief
Some of the UK’s top companies are failing to adequately report poor performance and sometimes obscure their true profit figures
Chartered accountant Colin Adams rebuilt the AIM listed company’s finance team and helped turn the business around after a challenging period