Consolidation is the purchase of different businesses with their unique culture, processes, and policies and there are major changes that need to happen immediately post acquisition.
According to McKenzie’s report, 70 percent of mergers fail.
A large portion of these failures is attributed to the lack of change management. There are 10 principles that the Consolidator Operating Framework includes in our methodology:
Lack of change management strategy at the level of the consolidator is the single and most important risk factor that will determine their ability to improve operational processes in order to execute the margin expansion using Decentralized Levers.