Financial complexity post-M&A

Mergers and acquisitions are often a strategic lever for growth, allowing businesses to expand their capabilities and strengthen themselves competitively. They are (hopefully) the fastest route to long-term value. They are also no longer a rare occurrence, instead becoming the strategic norm for most industries, including professional services.

A recent report from McKinsey* highlights the strong upward pull of M&A that they anticipate in 2025.

Over the past five years, M&A activity has been high in professional services, reflecting a rapid consolidation in this industry and demonstrating a highly dynamic market.

58%

of respondents
have acquired another
organization

48%

have been acquired in that time

25%

have experienced both of these in
the timeframe

*McKinsey, February 2025, M&A Annual Report: Is the wave finally arriving?

Mergers and acquisitions are an effective way for companies to grow rapidly, but they also carry a number of risks. Therefore, we must develop a more thorough financial assessment mechanism to ensure that all acquisition and investment decisions add real value to the company.

Business direction and strategy decision maker
Accountancy and financial services, Nordics

Financial complexity post-M&A

While M&A activity presents immense opportunities for growth and stronger market positioning, it also exposes:

^47%	Inconsistencies with financial data
^44%	IT talent and resource allocation challenges
^43%	Incompatible finance systems
^42%	Standardization of back-office process challenges

M&As are costly and complex, and they are also taking longer than anticipated. For 1 in 5 businesses, it took longer than 1 year to integrate company systems following a merger or acquisition. And 86% of senior decision makers said the integration of company systems, processes and financial data took longer than expected following a merger or acquisition.

That is a whole year of financial inconsistencies and risk; of operational inefficiencies, and of delayed value realization, putting question marks over the justification of the deal in the first place, while the discrepancy of expected time to integrate vs. experience highlights the gap between planning and reality.

Took longer than 1 year to integrate
company systems

_{^{A business stuck in ‘transition mode’ after an M&A is a missed opportunity for growth.}}

Financial complexity post-M&A

Appealing to investors and easing the M&A process

M&A success is not just about the transition. It’s also about demonstrating operational maturity, long-term readiness, and the ability to scale post-deal. In a competitive M&A landscape, the most attractive businesses will be those with agility, scalability, and robust systems already in place.

The top ways in which senior decision makers feel that they can enhance their business value to investors in this highly dynamic marketplace are:

These value drivers also align with the most critical steps to enable smooth M&A:

➡︎	Focus on clear and transparent communication
➡︎	Have scalable and flexible cloud-based IT/business solutions
➡︎	Streamline financial tools and systems

These actions not only ease the path to integration but also demonstrate operational maturity which is a key consideration for those looking to make investments into business acquisition. So, for organizations that see M&A as a ‘when,’ not an ‘if,’ proactive investment in scalability, process alignment, and automation is not just beneficial – it’s essential.