2015 is set to be a record-breaking year in mergers and acquisitions (M&A). But how many of those deals will actually be successful?
Depending on the research you choose to believe, between 50 percent and 90 percent of mergers result in failure.
Although this could be attributed to any number of factors, Paul Hagen, senior principal of customer experience at business and technology consulting firm West Monroe Partners, said success lies with the customer.
“Most of the time, when people are looking at M&A’s, they’re doing a lot of internal navel-gazing, looking at finances, internal systems, synergies, and cost savings,” said Hagen.
“None of this has anything to do with the customers. The customers are certainly part of the equation – there is some disruption in these areas – but no one’s really looking at the perceptions of the customers, nor how the affinity for the brand changes when companies come together.”