At Work with The Ready

32. Why Mergers and Acquisitions Fail (Almost Every Time)


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In most companies, mergers and acquisitions (M&A) is treated like a finish line. But the truth is, signing the deal is just the start—and if you haven’t thought deeply about how two operating systems, cultures, and teams will actually work together, you’re already behind. The vast majority of M&A efforts fail to deliver long-term value, not because the deal was bad, but because the integration never really happened.


This week, Rodney and Sam unpack why M&A is so alluring, so broken, and so often misunderstood. From boardroom incentives and CEO ego to missing strategy and magical thinking, they dig into what really drives the endless appetite for acquisition—and why the actual design work of merging two organizations is almost always underfunded, under-led, or completely ignored.


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    Mentioned references:

    • "reorg ep": AWWTR Ep. 31
    • "70-75% of M&A fails"
    • Ben Thompson and Stratechery
    • AOL/Time Warner merger
    • Microsoft/Nokia merger
    • "LARPing"
    • "OS work": The Ready's OS Canvas
    • "Midnight Zone and Twilight Zone": The Ready's Depthfinding
    • ecotones
    • "Microsoft innovation"
    • Rob Cross and Organizational Network Analysis (ONA)
    • McChrystal Group
    • mission-based team (MBT): FoHR Miniseries, Episode 1

    • 00:00 Intro + Check-In: What is something you’ve done recently that seemed like a good idea but has since proven otherwise?

      04:01 The Pattern: Companies acquire others for growth, merge goes bad, so have to acquire another

      09:54 Big visible activities with very unclear ROI

      14:09 Buying innovation because you can’t innovate internally

      19:15 Destroying all the qualities that made the target company valuable

      24:34 Mergers and acquisitions buy CEOs longer tenures

      28:19 Our culture celebrates the big swings, not the steady transformation

      30:35 Executive attention vanishes once the deal is signed, but that’s when the real work starts

      38:43 Idea #1 - Let acquired company operate independently for as long as possible

      41:35 Idea #2 - Use organizational network analysis to find and utilize your leverage points

      44:14 Idea #3 - Spin up a real mission-based team around integration, or due diligence

      46:18 Idea #4 - During due diligence, look at more than just the financial spreadsheets

      47:08 Wrap up: Leave us a review and share the show with a friend!


      Sound engineering and design by Taylor Marvin of ⁠⁠⁠⁠⁠⁠⁠⁠Coupe Studios⁠⁠⁠⁠⁠⁠⁠⁠.

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      At Work with The ReadyBy Rodney Evans and Sam Spurlin

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