Mergers and acquisitions (M&A) are often the secret sauce for growth, but let’s be honest: most companies are doing it wrong.
Studies from London Business School reveal that a whopping 70% of M&A deals destroy value. Ouch.
So, what makes the successful 30% so special?
They’ve nailed the fundamentals—strong executive ownership, strategic focus, and a dedicated, well-oiled M&A team.
These companies don’t just wing it.
They have clear processes, collaborate with business units, and tackle risks like pros.
But why do so many deals flop?
Executives typically blame three culprits:
Not enough good targets.
Dragging deal execution process.
No real strategy—just chasing opportunities as they pop up.
Here’s the twist: success isn’t just about having a flashy pitch deck or fancy financial models.
To truly thrive, your M&A team must also wear other hats: negotiator, integration planner, internal advisor, and communicator.
Let’s dive into how you can build an M&A team that actually delivers. Follow these five strategic steps and nine tips.
1. Establish Your M&A Strategy
Creating a winning M&A capability starts with asking the right questions:
What’s our M&A team’s role? Are they just reacting to one-off opportunities, or are they driving corporate strategy?
What’s our goal? How many deals (and how much value) do we want in the next 3–5 years?
Centralized or spread out? Do we want all expertise in one team or spread across departments?
How do we define value? Are we purely after financial wins, or are we chasing bigger strategic goals?
How hands-on should this team be? Do they need complete autonomy, or should they stay tethered to management oversight?
2. Govern Your M&A Process
Governance is like your M&A team’s compass.
Here’s how to find the right direction:
Top-down governance: Perfect for companies in stable industries. The big bosses call the shots, ensuring alignment and efficiency. But it can be slow and not very flexible.
Bottom-up governance: Great for dynamic, innovative industries. This approach lets ideas bubble up from the ground level. It’s fast and flexible but risks misalignment if everyone isn’t on the same page.
No matter your style, decision-making bodies (think boards and investment committees) are key players.
They set the strategy, approve budgets, and keep everything on track.
3. Structure Your M&A Team
Your team’s design can make or break your M&A success. Let’s break it down:
Where does the team sit?
Should the M&A team report to the CEO (strategic focus), CFO (financial rigor), or maybe the COO (operational execution)?
How centralized is it?
A centralized team moves fast but might miss nuances at the business unit level. Decentralized teams bring deep expertise but can be harder to coordinate.
What about team size?
Team size depends on your goals and budget. For specialized tasks, you can rely on external experts while keeping your internal team lean and sharp.
4. Set Your M&A Processes & Tools
Without clear processes and the right tools, even the best team will struggle.
Processes
Define responsibilities, set stage gates, and have crystal-clear target evaluation criteria.
Tools
From scouting platforms to integration trackers, use tech to streamline every stage of the deal.
5. Get the Right M&A Support
Collaboration—both inside and outside your company—can supercharge your M&A efforts.
Internal collaboration
Independent teams work best when M&A is a standalone activity.
Interlinked teams share more resources, improving alignment but requiring more coordination.
Integrated teams combine M&A with strategy, business units, and other functions for full cohesion (but it’s tricky to manage).
External collaboration
Bring in advisors with the right expertise and networks to plug gaps and add value.
A great advisor can handle the nitty-gritty details, letting your team focus on strategy.
9 Tips to Build a Winning M&A Organization
Own it at the top: Executives must take charge of M&A priorities and align them with the big-picture strategy.
Define clear roles and processes: Everyone should know what they’re doing and when. No confusion allowed.
Move fast: Speed matters in M&A—be bold, even if you don’t have all the answers.
Unite stakeholders: Get everyone—from dealmakers to integration teams—on the same page.
Learn from every deal: Keep improving by analyzing what worked (and what didn’t).
Invest in your team: A strong M&A team pays off big-time in the long run.
Build a target pipeline: Always have a list of promising companies to pursue.
Bring in business experts: Lean on them during due diligence and integration—just make sure they understand the process.
Use cutting-edge tools: Keep up with the times by leveraging the latest M&A tech.
The Key Takeaway
If your company wants to win in the M&A game, now’s the time to level up.
Building a top-notch M&A team isn’t a quick fix, but it’s worth it.
The companies that get this right position themselves to create serious value, and that’s a competitive edge no one can ignore.
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