Companies involved in mergers, acquisitions and buyouts need to be far more progressive in their risk management analysis, according to Greg Collins of Aon Risk Services.
Collins claimed that 30% of management buy-ins and 20% of management buy-outs are now in receivership; with half of all mergers and acquisitions also ending in failure.
"For many businesses, failure may not mean total collapse," said Collins. "It will take the shape of a face-saving merger or sale. The number one cause is generally the failure by management to consider the cultural differences in the integration process."