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