What is the greatest challenge in M&A?

Companies face a serious challenge in realizing the potential synergies offered by any specific M&A strategy, based on how they implement it.

In simple terms, success in the M&A context requires that strategy formulation and implementation be simultaneously considered. You need to ask questions such as: “What are we trying to achieve? What resources do we have, and which do we need to enable this particular achievement? What resources can be consolidated while maintaining quality standards?  How can we combine these external resources with our current resources without undermining our current capabilities?”

And while asking the questions is straightforward, addressing each concern across all aspects of an M&A is daunting and difficult.

Value creation depends on a leader’s ability to structure, bundle, and leverage resources.

What sets successful acquirers apart? 

Three things: solid upfront analysis, rigorous due diligence, and smart integration. Each of those has always been hard—but now they’re harder. Risks have always been part of M&A, but today they’re more interconnected. A disruption in one country can affect companies across the globe. Think of China: even if your deal isn’t directly tied there, your supply chain might be. Most domestic deals have international implications because of global supply chains and markets. 

Technology speeds things up. AI can assist with the front-end analysis and help reduce human error. But it’s not flawless. You still need experienced people to interpret and apply that information. Human oversight remains essential.

In this environment, do acquirers need to adopt new due diligence frameworks? 

Absolutely. Traditional due diligence focused heavily on financials, and that’s still critical—especially for CFOs. But now you need to go deeper: geopolitical analysis, capability assessments, and cultural compatibility. It’s about understanding what the firm can do going forward, not just what it has done. 

That’s where high-performing acquirers shine. They’re not just buying assets—they’re buying capabilities. Years ago, we did a study comparing high- and low-performing acquisitions. The best ones often had prior relationships with the acquired firm. That familiarity smoothed integration and helped retain top talent. 

We recently published a paper on what we call resource orchestration. It shows how some firms get this right—and others don’t. It’s especially relevant in tech sectors, where acquiring the right capabilities, like AI expertise, can be a game-changer. 

Most M&A failures stem from the inability to effectively orchestrate resources after the deal closes. Value creation depends on a leader’s ability to structure (acquire/divest), bundle (integrate and align), and leverage (deploy) resources. These resources include talent, capital, and organizational capabilities. Neglecting cultural integration, talent retention, and capability alignment often leads to missed synergies and strategic drift. 

Why do so many deals fail? 

Companies often pursue deals for the wrong reasons—ego, cost-cutting, and eliminating overlaps. And those deals tend to fail. Why? Because they lose the very people they need. Top talent doesn’t stick around in a cost-cutting environment. I’ve seen it happen. 

M&A strategy doesn’t fail in formulation—it fails in execution. Most deals underperform because organizations cannot orchestrate people, capital, and culture post-close.

What are some of the best practices for integration? 

Forming integration teams with people from both companies is key. That helps protect institutional knowledge and retain critical talent. In tech, especially, some firms keep the acquired CEO in place to ensure continuity and insight. That kind of respect for what the acquired firm brings makes a big difference.

With global supply chains, partner networks, and different regulatory environments, integration today demands clarity from the top. The C-suite must understand how the acquisition fits into the broader strategy. 

How is AI impacting deal-making? 

AI is valuable, especially in target analysis and due diligence. It can process massive amounts of data and highlight patterns or risks. But it’s not perfect—I’ve heard estimates around 85% accuracy. That’s good, but not good enough to replace human judgment. 

Do you have some final thoughts or advice for CFOs? 

Don’t oversimplify. Do the hard work during the analysis phase. Trust your internal and external experts and use tech tools wisely—but don’t rely on them blindly. And above all, remember, integration is where the value is won or lost. That’s where the real work begins.