The Billion-Dollar Blind Spot in M&A: How Cultural Integration Risks Derail Deals
Mergers and acquisitions, long hailed as a fast track to growth, carry a startling failure rate of 70-90%. The culprit? A systemic undervaluation of cultural integration. While financial modeling and legal due diligence dominate dealrooms, the human element often becomes an afterthought—until clashes erode value.
Private equity faces particular vulnerability. Accelerated timelines magnify cultural mismatches, triggering leadership exoduses and operational gridlock. True culture extends far beyond superficial traits; it's the unspoken rules governing how organizations execute when no one's watching.