Several recent studies indicate that the lack of a coherent integration
process lies behind the failure of many acquisitions. A Mercer Con-
sulting study of companies generating post-acquisition returns to
shareholders of $500 million or more found that the determining fac-
tor in an acquisition's success was neither the price premium nor the
underlying strategy. Rather, success was most dependent on the way
the integration was handled: ¹ "For most companies, in short, the deal
is won or lost after it is done." ²

Fortunately, experience seems to be a good teacher. In fact, experi-
enced acquirers -- those that complete six or more deals per
year-have a much higher success rate than less experienced ones,
even when, as is often the case, the prices they pay are high. ³ What
have those firms learned?

What are sometimes looked at -- or scoffed at -- as the "soft issues"
related to integration are particularly important. In 1998 and 1999,
Right Management Consultants undertook a survey of both acquirers
and firms that had been acquired. Responses were received from exec-
utives in nearly 180 companies; each had experienced an acquisition
within the past three years.

Among other things, the survey asked each respondent to rate his or
her organization's effectiveness in dealing with the people issues re-

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