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Organizations are resetting M&A strategy to address disparate challenges

November 7, 2022

Priorities include a greater focus on culture, leadership and employee wellbeing during due diligence and integration.
Mergers and Acquisitions
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Organizations are resetting M&A strategy to address disparate challenges

Organizations are resetting M&A strategy to address disparate challenges

A range of factors are prompting organizations to review their M&A strategy

  • 53% - Technology/Automation
  • 33% - Economic instability
  • 25% - Increased focus on ESG
  • 23% - Political instability
  • 21% - Legal and regulatory hurdles
  • 21% - Supply chain issues

Key deal integration challenges

  1. Integrating cultures: 65%
  2. Integrating technology: 50%
  3. Limited resources to handle integration: 45%
  4. Retaining key talent: 39%

How organizations look to address challenges throughout the M&A journey

Due diligence and integration priorities over next two years

Enhance the understand in the due diligence phase

  • 79% - Culture and leadership
  • 50% - Employee wellbeing

Significantly increased focus in the integration phase

  • 73% - Culture and leadership
  • 63% - Employee wellbeing

Note: Percentages indicate “to a great extent” or “very great extent.” “Not sure” option excluded.

Emerging issues

When assessing a deal, roughly 4 in 10 are planning/considering reviewing policies related to (in order of importance):

  • 43% - Climate
  • 39% - Diversity, equity and inclusion
  • 35% - Environmental, social and governance

Actions you can take now!

  • Review your M&A strategy, taking into account pressing issues, including changes in technology and economic conditions
  • Identify your key deal integration challenges with a special focus on culture, technology and retention
  • Implement employee sensing to improve employee engagement and access cultural fit
  • Consider reviewing the target’s policies related to climate, DEI and ESG during a deal assessment

Source: WTW M&A Barometer Survey 2022

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