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Post-merger integration: 5 mistakes SMEs should avoid

19 February 2025
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Mergers and acquisitions (M&A) serve as a strategic lever for SMEs, enabling them to expand their market reach, strengthen competencies, and enhance competitiveness. However, the true value of an acquisition is not realized at the time of signing but during the post-merger integration process.

Many transactions fail at this stage, undermining initial objectives and generating inefficiencies that diminish expected benefits. To prevent these pitfalls, it is crucial to understand the most common mistakes and implement targeted strategies to avoid them.

1. “We have to do it because… I said so”

When decisions are driven by personal intuition or the interests of a few rather than strategic analysis, the risk of failure increases. If integration is guided more by ego than by a structured plan, resistance and inefficiencies may slow down the entire process.

How to avoid it?
Establish a detailed integration strategy during the due diligence phase, involving all key business functions. Every decision should be data-driven and aligned with the company’s growth objectives.

2. “The numbers will work out anyway”

One of the biggest mistakes is manipulating financial data to make the deal appear more beneficial than it actually is. This leads to underestimating hidden costs, operational complexities, and overestimated synergies, ultimately making the integration more costly and problematic than expected.

How to avoid it?
Conduct a realistic financial analysis, considering all variables that could impact post-merger results. It is crucial to adopt conservative scenarios and have contingency plans for potential issues.

3. “Everything will work out… it has to”

Assuming that integration will go smoothly without obstacles is a risky mindset. Differences in organizational models, work habits, and business dynamics can create friction and inefficiencies if not managed in a structured manner.

How to avoid it?
Identify key areas of risk and develop mitigation plans. Schedule regular assessments and measure the effectiveness of integration using specific performance indicators.

4. “We’re all exceptional!”

Believing that two companies will integrate seamlessly just because both are high-performing is an illusion. Cultural differences, work methodologies, and decision-making processes can be major obstacles, slowing down alignment and generating inefficiencies.

How to avoid it?
Develop a cultural integration program by identifying the most significant differences between the two entities and creating pathways to harmonize processes. Change management should be a priority from the outset.

5. “We’ll inform employees later”

Delayed or fragmented communication can create uncertainty and demotivation among employees, increasing the risk of losing key talent and causing internal friction. People are the true drivers of integration—excluding them from the process is a strategic mistake.

How to avoid it?
Implement a transparent and structured communication plan, keeping employees informed about developments and actively involving them in different stages of integration. Clarity and consistency reduce uncertainty and foster a positive work environment.

Conclusion

Post-merger integration is a critical phase in ensuring the success of an M&A transaction. Avoiding these mistakes helps reduce inefficiencies, maximize synergies between the merging companies, and achieve sustainable long-term growth.

Thorough planning, careful resource management, and clear communication are essential to turning an acquisition into a solid and lasting competitive advantage.


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