Russell Reynolds Associates: The Role of the CEO in Mergers & Acquisitions
In response to the increasing interest in M&A, Russell Reynolds Associates wanted to write to CEOs about their role in this, based on advice other CEOs have shared after having gone through the process themselves.
No CEO has ever launched an M&A effort hoping it would ultimately fail, yet we know they often do. According to research, half of M&A activities fail to generate the value expected at the start of the process. There are many reasons why. When asked, just under half (47 percent) of executives cited a lack of understanding of both cultures as a key point of failure. And just over a quarter (27 percent) pointed to a lack of a clear and consistent strategic vision at the board level.
What’s a CEO to do? Successful M&A leaders mitigate these risks by focusing on three core areas:
- Executive Talent
- Board Effectiveness
- Organizational Culture