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Partnerships: the key to successful mergers and acquisitions

Published Date

Bell experts supporting a customer through their mergers and acquisitions journey.

Canadian businesses are increasingly turning to mergers and acquisitions (M&A) as a path to growth. A recent survey revealed that 90% of large Canadian businesses plan to acquire other companies within the next three years, with over a third of small and medium-sized businesses sharing this ambition.1 

While M&A offers a promising route to expansion, successful integration is paramount for realizing its benefits. Studies indicate that a significant 70-90% of mergers and acquisitions fail to deliver the intended value.2 These integration challenges can arise across various functional areas, potentially hindering growth and impacting operations.3 

The potential for success in M&A is undeniable, but it comes with inherent risks. Over 40% of Canadian CEOs anticipate making deals with significant operational impact, while nearly 50% plan for deals with moderate impact. Organizations that successfully integrated core functional areas like IT, HR, and operations were two and a half times more likely to achieve strategic, financial and operational success following a merger or acquisition.4 

Tight integration is crucial for the success of many M&A endeavors. Fortunately, businesses don't have to navigate this complex process alone. The right technology partner can provide invaluable support throughout the M&A journey, enabling companies to: 

      • Access specialized skills and certifications: Seamlessly integrate different systems or deploy new ones, even amidst labor challenges like skill shortages. 
      • Minimize operational disruptions: Leverage the partner's deep experience and strong project management skills to ensure smooth integrations. 
      • Expand service reach: Extend services to new acquisition locations and future expansion areas with a technology partner operating nationally. 
      • Simplify complexity and accelerate issue resolution: Benefit from a single point of contact for a range of solutions through a technology partner with a broad portfolio. 

Discover how we helped Environmental 360 Solutions and Smith & Long achieve smooth and sustainable growth through multiple acquisitions.

Sources:
1. KPMG. 2024 Canadian CEO Outlook. 
2. Harvard Business Review. Don’t Make This Common M&A Mistake. 
3. BDO Canada. Unleashing value: Why companies need a clear post-merger integration strategy.  
4. PwC. Five areas of integration that successful M&A organizations get right.