Upfront: How To Make Mergers and Alliances Work

A lack of internal alignment is the most common reason why mergers, acquisitions and strategic alliances so frequently fail to meet expectations, according to Boston-based consulting firm Vantage Partners.

Companies that do not adequately align internal resources in support of a transaction may find that managers make poor decisions when negotiating the deal. Then, once the terms of the union are nailed down, employees may send mixed messages to -- or act inconsistently toward -- the partner organization, which results in confusion and jeopardizes trust between the businesses. In addition, poor alignment within a company is likely to result in bickering among workers who are unclear about the company's priorities and focus.

To develop the internal alignment necessary for an intercompany transaction to succeed, Vantage Partners says, a business must have an effective process for identifying key decisions and issues related to the deal. It also must recognize the relevant stakeholders and consult with them regularly so that the organization stays appropriately informed and the stakeholders stay involved throughout the life span of the partnership.