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
- Integrating cultures: 65%
- Integrating technology: 50%
- Limited resources to handle integration: 45%
- 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
Almost half are planning or considering employee sensing activities, such as focus groups or surveys, to improve employee engagement.
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
