At Work with The Ready

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


Listen Later

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.


--------------------------------

Let's work together: ⁠⁠⁠⁠⁠https://www.theready.com/working-together⁠⁠⁠⁠⁠


Get our newsletter: ⁠⁠⁠⁠⁠Sign up here⁠⁠⁠⁠⁠⁠⁠.


Follow us:

  • ⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠
  • ⁠⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠⁠⁠
  • --------------------------------


    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.

      ...more
      View all episodesView all episodes
      Download on the App Store

      At Work with The ReadyBy Rodney Evans and Sam Spurlin

      • 5
      • 5
      • 5
      • 5
      • 5

      5

      183 ratings


      More shows like At Work with The Ready

      View all
      Hidden Brain by Hidden Brain, Shankar Vedantam

      Hidden Brain

      43,534 Listeners

      The Knowledge Project by Shane Parrish

      The Knowledge Project

      2,695 Listeners

      Coaching for Leaders by Dave Stachowiak

      Coaching for Leaders

      1,475 Listeners

      HBR IdeaCast by Harvard Business Review

      HBR IdeaCast

      179 Listeners

      How to Be Awesome at Your Job by How to be Awesome at Your Job

      How to Be Awesome at Your Job

      1,037 Listeners

      Worklife with Adam Grant by TED

      Worklife with Adam Grant

      9,135 Listeners

      Inside the Strategy Room by McKinsey & Company

      Inside the Strategy Room

      177 Listeners

      At The Table with Patrick Lencioni by Patrick Lencioni

      At The Table with Patrick Lencioni

      1,132 Listeners

      The Happiness Lab with Dr. Laurie Santos by Pushkin Industries

      The Happiness Lab with Dr. Laurie Santos

      14,403 Listeners

      A Bit of Optimism by Simon Sinek

      A Bit of Optimism

      2,228 Listeners

      ReThinking by TED

      ReThinking

      619 Listeners

      We Can Do Hard Things by Treat Media and Glennon Doyle

      We Can Do Hard Things

      41,659 Listeners

      Fixable by TED

      Fixable

      222 Listeners

      HBR On Leadership by Harvard Business Review

      HBR On Leadership

      173 Listeners

      What Now? with Trevor Noah by Trevor Noah

      What Now? with Trevor Noah

      4,306 Listeners