Strategix Acquisition: The Due Diligence That Missed Everything

 M&A due diligence failure is rampant. Corporate Mergers & Acquisitions are notoriously unsuccessful, with studies by leading consultancies like Harvard Business Review and McKinsey & Company often placing the failure rate - the percentage of deals that fail to generate expected value - between 70% and 90%. This high rate is tied to flawed execution, not strategy.

In this cartoon, I highlight this ultimate failure: the moment a high-stakes team, buried under paperwork, realizes they may have acquired a company that doesn't fundamentally exist. This scene satirizes the oversight that plagues the process, mirroring catastrophic, real-world blunders:

• Financial/Fraud Failure: Like HP's acquisition of Autonomy or AOL's merger with Time Warner.

• Strategic/Cultural Failure: Like Daimler's failed merger with Chrysler or Microsoft's disastrous acquisition of Nokia's mobile unit.

The cartoon serves as a stark reminder: looking diligent is never a substitute for being diligently critical.

Considering the 70% to 90% failure rate, where do you think the due diligence process breaks down first?

Share due diligence disaster stories, you are aware of, in the comments below!