Successful postmerger integration in telecommunications: Tying the knot? Untangle it first

European telecommunications companies are beating the bushes for attractive mergers-and-acquisition (M&A) deals. Too many of those deals, however, don’t deliver the expected benefits—and often end up destroying value. The culprit: poor postmerger integration execution. Telcos can avoid disappointment by planning better and moving faster.

At a glance

• Today’s deals are hyper-complex, forcing merger partners to grapple with “wicked problems” such as integrating legacy IT systems, rationalizing and cross-selling product lines, and migrating customer databases.
• Adding to the complication, regulators often demand structural remedies to ensure robust competition.
• Companies can overcome these challenges by planning with near-military precision and intensity and by moving quickly to validate estimates of merger benefits.
• We recommend that companies over-invest in integration planning and start planning well deal closing.
• Technology—and a hefty dose of courage—can help companies untangle the knotty problems they face and leapfrog the competition with cutting-edge processes and services.