Potential pitfalls of startup integrations: An exploratory study

Abstract

This paper aims to confirm pitfalls relevant in the integration stage of startup acquisitions mentioned in the literature and to identify new ones. To accomplish this, we conducted a literature review and a multiple case study with semi-structured, qualitative expert interviews. The results indicate the integration of an acquired startup may be challenged by potential pitfalls relating to acquirers or startups or a lack of their concordance. Unfavorable integration process attributes can also harm the integration success. We identified a lack of national-cultural fit and low performance of the integration team as additional potential pitfalls.