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Business Strategic Financial Planner, Coach, and Speaker | Automating CFO Intelligence with dynamic forecasts, integrated financial reports and real-time dashboards | Founder & CEO @Financiario | OanaLabes.Com

CEOs love M&A deals. When they work, 1 + 1 = 3. But here’s the catch: they rarely do. 90% of mergers and acquisitions fail. They promise synergies, scale, and transformative growth. But what they deliver is: - Overpriced valuations that bleed cash - Cultural clashes that drive talent away - Integration chaos that derails operations - Missed synergies that remain nothing more than promises The result? Most M&A deals destroy value instead of creating it. Why does this keep happening? Because M&A is treated as a flashy shortcut to growth— When it’s really the most complex and risky move a company can make. Get my 150 point M&A Checklist and learn to maximize deal success: https://bit.ly/3ZBtRUt Here’s why most deals fall apart: 1️⃣ Strategic misalignment Too many deals chase growth, not value. ↳ Targets don’t align with the acquirer’s core strengths or strategic goals. ↳ What you get is friction, not synergy. 2️⃣ Overpaying for potential In the heat of the deal, discipline disappears. ↳ CEOs pay a premium for hype, locking in underperformance ↳ What you get is a fast track to failure. 3️⃣ Synergies that never materialize Synergies sell the deal, but they rarely show up. ↳ Cost synergies underestimate complexity. ↳ Revenue synergies overestimate market realities. ↳ Without a detailed execution plan, synergies stay on paper. 4️⃣ Cultural Clashes Merging two companies means merging two cultures—and that’s where things get messy. ↳ Misalignment drains morale, causes talent to flee, and stalls progress. ↳ Cultural diligence should be as rigorous as financial diligence. 5️⃣ Integration Failure Integration is the graveyard of M&A deals. ↳ CEOs treat it as an afterthought instead of a priority. ↳ No detailed plans. ↳ Limited resources. ▷▷▷ What all this means for CEOs M&A isn’t a shortcut to market dominance—it’s a calculated risk. To win, you need: ↳ Strategic alignment: Align every deal with your core goals. ↳ Cultural alignment: Treat culture as a make-or-break factor. ↳ Grounded synergies: Build plans based on operational reality. ↳ Integration planning: Start before the deal is signed, not after. ↳ Valuation discipline: Walk away when the price doesn’t make sense. ↳ Appropriate financing: Align financing structures with cash flow patterns Remember: Most deals fail because they skip the hard work in favor of the headlines. M&A isn’t magic. It’s not 1 + 1 = 3. It’s strategy, execution, and discipline. If you’re not ready to play that game, you’re better off not playing at all. ▷▷ Want to learn to connect business objectives with finance strategy and drive results? Start here: https://bit.ly/3Owa5U4 Like, Comment, and Share if this was helpful. And follow Oana Labes, MBA, CPA for more.  

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Oana Labes, MBA, CPA

Business Strategic Financial Planner, Coach, and Speaker | Automating CFO Intelligence with dynamic forecasts, integrated financial reports and real-time dashboards | Founder & CEO @Financiario | OanaLabes.Com

2w

Most M&A deals fail because they skip the hard work in favor of the headlines. M&A isn’t magic, it’s strategy, execution, and discipline.

What’s the hard source for the 90% Oana Labes, MBA, CPA ?

Anders Liu-Lindberg

Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance

2w

M&A is a skill like anything else. Most fail because the acquirer (or biggest party in a merger) does it too infrequently. That means you don’t do build the skill to do it well and have to start from scratch every time. Another issue is that companies do too big deals. This tends to strap the company for resources for too long meaning many other opportunities are lost.

CH Tan

FCPA (Aust), CA (Singapore), Level 2 Coach (Institute of Executive Coaching & Leadership)

2w

Thanks for sharing this. Saw many of these. Most companies will not admit they failed the M&A, there are always reasons just to protect someone's job. Below are a few that I can share Executives Ego makes 1+1 = -xxx Offensive vs Defensive strategy in M&A provide different valuation models that drives offer price Over reliance on resources from the acquiring company and missing the talents from the target company, the inability to combined best talents from both sides, aligning directions with trust likely the biggest misstep in M&A.

Great insight and valid points! Not sure I would agree with 90%? Do you have a source? Maybe the people in my world are just really good

Janvi Balani

Leading the Charge to Net Zero with Sustainability & Climate Action

2w

This is an incredibly insightful post—thank you Oana Labes, MBA, CPA Ma'am, for sharing such valuable perspectives on M&A. Your emphasis on strategic alignment, cultural diligence and disciplined execution is spot-on. This is a crucial reminder that successful M&As are built on thoughtful planning and hard work, not just headlines.

Tom White

COO | Business Intelligence | DATA Storyteller | EBITDA Builder | P&L Management | Supply Chain | IBP-S&OP | Commercial | Operations | Business Transformation | Project Management | Operational Excellence

2w

It's often a case of; Weak Balance Sheet + Weak Balance Sheet = Weaker Balance Sheet

Dominik T.

Accuracy | Restructurer & Turnaround Senior Manager 4 Holistic Value Creation | Founder & eCEO of EquiNexT | MedTech, NeuroTech & Healthcare | „Crypto is the Future & it is written NOW“ | PMI -> private views only <-

2w

Oana Labes, MBA, CPA Great Post! That is why it is the „Champions League“

Emil Parthenides

M&A Advisor for Private Businesses $10M to $200M EV | MD @ EP Advisors

2w

Great points but 90% seems very high. I think a point that should be number 1 is: “Changing Things Too Quickly”. Big mistake and this creates a lot of the issues in M&A deals you note.

IN Murthy

Finance leader with over 20 years of expertise in strategic financial management, cost optimization, & operational excellence across industries.

2w

Nice read and fully agree I have been a part of one such merger where legacy within the entities too spooled the smooth transitions impacting the growth and cash bleeds.

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