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The Strategy Digest / Harvard Business Review

After a Merger, These 3 Inefficiencies Can Actually Be Assets

Harvard Business Review · Article · 5 Mar 2024 · Empirical research · Paywalled · Editor's rating: ★ Noted

Some inefficiencies in post-merger integration, such as mirror teams, help technology acquisitions deliver growth.

Summary

Bingham notes that technology acquisitions, about 20% of all deals, help firms control nascent markets, renew strategy and gain knowledge and capabilities. Drawing on more than a decade of research on hundreds of organizations and interviews with executives on three continents, he finds that certain inefficiencies in post-merger integration are often effective for growth. He describes three such inefficiencies, starting with mirror teams in

Editor's opinion

Interesting counterintuitive claim about post-merger inefficiencies, but qualitative/interview-based rather than quantified.

Key concepts

Post-merger integration · Productive redundancy · Technology acquisitions

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