Human capital determines the success of an M&A

The search for managers capable of handling the integration phase after an M&A transaction fails in half of the cases. Therefore, The most efficient solution is to ensure that the companies' managers receive the appropriate training to navigate the critical post-merger months.

This was the argument put forward by Jean-François Aron, Senior Partner at J. Hirsch & Co., the private equity consulting firm that is a founding partner of the Acquire Lab at SDA Bocconi School of Management, during the lab’s presentation.

The Acquire (Acquisition and Capital QUalities in Responsible Enterprises) Lab is built on the belief that, among the various types of capital involved in an M&A transaction, human capital is the most important.

“M&A research has only marginally addressed post-transaction performance,” said one of the lab’s two directors, Matteo Vizzaccaro. “And these performances are largely determined by the quality of human capital. It typically involves mid-managers with seniority and loyalty but often with only average formal education. For years, J. Hirsch has been supporting their upskilling by financing their participation in SDA Bocconi courses.”

One of the lab’s key tools for collecting data and achieving research results is the Private Market Award, introduced by the other director of the Acquire Lab, Leonardo Etro. “The Award analyzes and recognizes the best merger and acquisition deals, assessing post-transaction performance to identify best practices and the impact of corporate human capital,” he explained. “In many industries, company size is becoming increasingly important, and the Italian economy - characterized by a high number of SMEs - risks being disadvantaged when larger foreign players acquire our gems, outcompeting smaller Italian firms.”

A presentation by Claudio Scardovi, Senior Partner at Deloitte, highlighted that M&A transactions in private markets tend to yield higher returns and lower risks compared to those involving publicly traded companies.

This was followed by a lively discussion on the Italian private markets, moderated by Rachele Anconetani, Lecturer at SDA Bocconi, featuring Francesco Vitulano, Managing Director & Head of Private Credit Italy at Blackstone, Max Pellegrini, CEO of Namirial, Nicola Colavito, Partner at Peninsula Capital Advisory, Stefania Gentile, Chief Executive Officer & General Manager of Mooney, Fabrizio Redaelli, Fellow at SDA Bocconi, and Ernesto Lanzillo, Senior Partner & Deloitte Private Leader.

Paola Cillo, Associate Dean for Research at SDA Bocconi, thanked the companies that, by partnering with the School, enable it to conduct applied research with significant implications for business management. “Without them, this kind of research wouldn’t be possible,” she stated, “both due to cost constraints and because their proximity allows us to identify emerging trends as they develop.”

SDA Bocconi School of Management