5 Mistakes Companies Make in M&A — and How to Avoid Them

In the world of mergers and acquisitions (M&A), small oversights can cost millions. According to KPMG, over 80% of M&A deals fail to deliver expected value, often due to avoidable strategic or operational missteps.

Whether you’re a corporate executive, deal advisor, or legal counsel in Singapore, understanding these pitfalls is crucial—especially in a fast-moving market where due diligence, regulatory scrutiny, and stakeholder expectations are higher than ever.

This article covers five of the most common M&A mistakes and shows you how to avoid them using the right planning, strategy, and digital infrastructure. We’ll also explore how datarooms.sg—a trusted platform for reviewing the top virtual data room providers in Singapore—can help your team make smarter, safer deal decisions.

Mistake #1: Incomplete Due Diligence

Why is due diligence often rushed?

Time pressure and overconfidence often lead deal teams to overlook critical financial, legal, or operational risks. But incomplete due diligence can result in acquiring hidden liabilities, overvaluing assets, or facing compliance issues post-deal.

PwC Singapore reports that due diligence oversights were a primary reason for deal underperformance in more than 60% of failed M&A cases in Southeast Asia.

How to fix it:

• Use a structured digital platform to manage document collection and review.

• Centralize access for legal, financial, and regulatory stakeholders.

• Choose a virtual data room provider via datarooms.sg to ensure secure and efficient due diligence.

Mistake #2: Treating Integration as an Afterthought

What gets lost in poor post-deal planning?

Without early integration planning, companies often struggle to align operations, IT systems, teams, and cultures — resulting in lost synergies and internal confusion.

A 2022 report by Bain & Company found that only 30% of companies begin integration planning before the deal closes — often too late to prevent value erosion.

Avoid it by:

• Appointing integration leads during the due diligence stage.

• Mapping out key systems and stakeholder roles.

Mistake #3: Ignoring Cybersecurity During the Deal

Data breaches can derail a deal

During M&A, both parties share sensitive financials, legal documents, customer data, and IP. If shared insecurely, this data becomes a prime target for cybercriminals—or an accidental leak.

What to do instead:

• Avoid emailing documents or using unsecured cloud storage.

• Select VDRs with end-to-end encryption, watermarking, and user-level access controls.

Mistake #4: Misjudging Valuation and Deal Terms

Financial assumptions must be validated

Overvaluing synergies, underestimating liabilities, or misreading market conditions can destroy deal value. Transparency and reliable forecasting are key to bridging buyer-seller gaps.

Common valuation errors include:

• Overprojecting revenue growth

• Undisclosed debt or legal issues

• Failing to account for integration costs

Better approach:

• Maintain up-to-date financial disclosures in a secure, searchable data room.

• Provide transparent access to historical performance metrics.

Mistake #5: Overlooking the Human Factor

Culture can make—or break—a merger

Poor cultural alignment can cause leadership clashes, staff turnover, and communication breakdowns post-acquisition.

What works better?

• Conduct cultural assessments during the due diligence phase.

• Share onboarding plans and communication policies through your VDR.

Why Use Datarooms.sg for Your M&A Workflow?

Datarooms.sg is your go-to resource for discovering and comparing the best virtual data room providers in Singapore — from local startups to global leaders.

Features you can explore:

• Comparison of security standards and pricing models

• User reviews and provider ratings

• Localized support options

• Ideal use cases (e.g., M&A, IPO, litigation)

• Direct links to free trials or demo requests

Whether you’re managing a domestic acquisition or a cross-border deal, datarooms.sg helps you choose the right platform for your transaction’s scope, size, and security needs.

Quick Recap: 5 M&A Mistakes and Their Solutions