In November 2023 our international team published a white paper following a study of 92 companies which performed ~800 acquisitions in aggregate over the previous 5 years, which includes success rates of recent integrations, criteria for a successful integration, success factors and drivers of failures and best practices for integrations.
Within our panel, one key success factor that drives integration success while protecting each business’s value is the identification and retention of key people and the underlying incentive mechanisms.
We observed that adopting the appropriate incentive structures is crucial to retain key talents. 74% of companies identify key talent in both top and middle management (26% in top management only).
Incentive mechanisms are either driven by financial compensation:
- Salary increases
- Specific short- and /or long-term bonuses
- Shares in the combined group/management package
- Earn-outs
or driven by new roles & responsibilities, in the short or longer term, within the combined group.
Download our latest whitepaper, co-written by our post-merger integration and dispute resolution experts, to understand the influence of incentives mechanisms, including earn-outs, on integration success and how to properly activate these mechanisms without suffering negative side effects.
Enjoy the read!
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