The larger the deal, the higher the chances of failure, says this Houston expert. Photo via Getty Images

Study after study puts the failure rate of mergers and acquisitions somewhere between 70 percent and 90 percent (2011, HBR). One KPMG study narrowed the band of M&A failures to 75 percent to 83 percent (2015, KPMG). One constant in the research is that the larger the deal, the higher the chances of failure.

A FAILED MERGER, ACQUISITION, OR DIVESTITURE CAN BE UNDERSTOOD IN 2 WAYS:

  • Qualitative – what the companies had in mind that caused them to merge in the first place doesn't work out that way in the end.
  • Quantitative – shareholders suffer because operating results deteriorate instead of improve.

Deloitte's M&A Trends 2020 reports that 38 percent of PE firms cite revenue and growth improvement strategies as their primary strategy or focus area for driving value in their portfolio companies.

In the same report, EFFECTIVE INTEGRATION is key for the success of the deal. It accounts for 20 percent of a successful transaction, tied for top place with ACCURATELY VALUING A TARGET.

Post-M&A integration is defined as the implementation of changes in functional activities, organizational structures, and cultures of the two organizations to expedite their consolidation into a functional whole. Of course, this all involves people.

Moreover, Aon Hewitt research shows that:

  • There is a 23 percent increase in "actively disengaged employees" after a change event – even if no one's job is affected.
  • It takes about three years to return to pre-merger engagement levels.

With these figures, it is startling that there is not more focus on talent. Executives attribute 72 percent of their company's value to their employees, yet a mere 12 percent of companies align their talent strategy with their business strategy (Predictive Index, The 2020 State of Talent Optimization).

HOW ARE INVESTORS IN THE PRIVATE MARKET CHANGING THE TIDE?

According to Mike Zani, CEO of The Predictive Index, "When you look at the world of PE, growth equity, and to a lesser extent, VC, we are starting to see more talent officers, someone on staff to assist with strategic HR challenges with their portfolio." For example, Vista Equity has a consulting division that is solely focused on the talent and people analytics of its portfolio companies. They go beyond just finding the right executives, they have proprietary analytics tools to add value.

THERE ARE THREE USE CASES FOR ANALYTICS WITHIN THE PRIVATE MARKET:

1. Due Diligence

"One of the most powerful ways behavioral analytics are used for due diligence is understanding the strengths and blind spots of the future leadership team. It's about applying analytical rigor to the people side of the business to create a nuanced understanding of individual and team dynamics so you can be intentional about how to enable and de-risk the execution of future growth plans. We surface people challenges and opportunities early in the process so our clients can put strategies in place for effective change management and talent optimization." Heather Haas, President, ADVISA.

After signing a letter of intent, a consultant can assess the leadership team with behavioral, cognitive, and organizational assessments. In the process of evaluating leadership fit, consultants may identify gaps between the leadership abilities needed and those present in the executive team, and investors must focus attention on closing those gaps. It is much easier to suggest fixing them before the deal is closed, where investors can work with the company to create leadership development or hiring plans. If investors discover that the executive team lacks financial or operational excellence 6 months after close, it is going to be much harder to communicate that in a positive, forward-looking way.

Predictive Index isn't the only tool used for due diligence. Specialty consulting firms that provide due diligence support with people analytics include GH Smart, Green Peak Partners, Korn Ferry, and Deloitte. They use a host of tools ranging from Hogan assessments to proprietary software. "Out of the 150 PE clients with The Predictive Index," Zani says "about 1/3 are using it in due diligence regularly."

2. Post-Deal Value Creation

Effective M&A integration accounts for 20 percent of the success of a deal. As I mentioned in the last post, behavioral analytics can provide insights that allow each person to easily understand how their new team members are wired. This can drastically reduce the time it takes to build cohesion among the group and make for more effective collaboration as project teams are regularly assembled and reassembled. Put simply, instead of using our energy to try to figure each other out, we cut through the noise so we can run faster.

3. Scale

The use of behavioral analytics for hiring is nothing new. With an infusion of cash, one of the first thing a company does in response to growth goals is to hire. People data can help companies scale quickly and with confidence. Max Yoder, CEO and Founder of Lessonly shares about Predictive Index, "Now, every time we hire, we use the assessments as another tool in our toolkit. The results will never decide whether a person gets hired or not, but they do provide guidance as to whom should be in sales, whom should be in client experience, whom should sit in a quiet space, and whom thrives on commotion."

Even with such impressive results, still there are two schools of thought when it comes to how much control private market firms want to have over the operations of their portfolio companies. General Catalyst, the PE firm that invested in Predictive Index, in particular, says they don't want to be the management team. Kirk Arnold, Executive In Residence, General Catalyst says "We're very founder supportive. We invest in entrepreneurs and innovators and work to support them. We share feedback and insights with those teams – and encourage them to The Predictive Index toolset to help them scale effectively. But we don't force any of our teams to invest in any particular tool or strategy. We believe great businesses are built by great teams, and we believe that PI can help companies excel in team building – but we look to the leadership team to make those investment decisions based on their needs and culture.

Prior to becoming a Predictive Index Consultant, I spent five years integrating acquisitions. I only had access to PI for the very last year. It was so powerful in building dream teams that I wished I had known about it sooner. Areas I used PI heavily was in post-deal value creation as well as scaling. In my current practice, I spend about 20 percent of my time performing due diligence for start-ups as well as working with them to round out their team from a data-driven perspective.

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This article was written by Wendy Fong, founder and principal of Chief Gigs, and originally appeared on Liu Idea Lab for Innovation & Entrepreneurship's blog.

Talent optimization goes beyond human resources practices, management consulting, and productivity tooling to describe a model that empirically aligns strategy and people practices. Photo via Getty Images

Houston expert: Finding your tech talent through analytics

Houston Voices

You know the work that needs to get done, and you know the environment that you want to build. How do you find the people who will build it with you? Historically, we relied on relationships, intuition, and track record when we evaluate potential team members. This is the same approach we use to find our mates, and well, the divorce rate speaks for itself.

Perhaps you know your potential partner from a previous job when you both worked for a public company, and they were a high performer. Even when we have worked with someone before and they had a great track record, things can go awry. Humans are messy beings. When factors that affect motivation (such as equity percentages, the potential for exit, working 80-plus hours a week) change, performance can be affected. The people who do really well as a cog in the wheel do not necessarily have the same drive to BUILD the wheel. So how do we pick the team members who will best suit the work and environment?

Did you know that 95 percent of people think they're self-aware, yet only 10 to 15 percent actually are (Tasha Eurich)? If people don't know themselves, how can you possibly know your potential partner's fit?

Behavioral assessments aren't new. If you've ever worked for a large company, you've likely taken one. What is different now is that The Predictive Index is harnessing the power of behavioral analytics to predict success and help us visualize teams in a whole new way. We can now look at people's work style in under 6 minutes and quickly give you data on how people will perform in their role and with your team to drive alignment in your organization.

As a founding board member and active investor in Valhalla Investment Group, we recently implemented the practice of using behavioral analytics in our due diligence. We then look at individual and team results to identify any gaps between strategy and the team's ability to execute the strategy. We specifically look at a team's appetite for risk, approach to change, and response to pressure.

The results for one startup we were evaluating came back with a potential red flag. Five of the six in the executive team were exploring leaders in the "Innovation and Agility" quadrant. These leaders are independent and comfortable with risk. We had one who was a very strong stabilizing leader in the "Process and Precision" quadrant. This person is very precise and cautious with risk. We immediately reached out to the CEO to schedule a Zoom to ask how the team works with what could be seen as an "outlier" and how they deal with the friction. The CEO understood the strengths and cautions of his team and explained that while this person is different, they are very much needed. They provide balance and contribute to areas that are blind spots for the rest of the team. The way the CEO handled the question showed us that he was self-aware enough to manage such differences and gave us the confidence to invest in this startup.

HOW IS THIS RELEVANT FOR YOUR STARTUP?

Founders

Wouldn't it be great to know potential partners' appetite for risk, how they deal with deadlines, their proactivity or reactivity to issues before you meet them? Or how they respond to pressure? Founding partners can be evaluated to ensure their behavioral drives align with the startup strategy.

For example, if the strategy is to fail fast to obtain product-market fit and grow market share quickly, founders would need to be innovative, risk-tolerant, comfortable with ambiguity, and they'd need to thrive under pressure. Conversely, if your startup serves a highly regulated environment, your founding team needs to be well-organized, careful with rules, and cautious with risk.

Team dynamics and inclusivity 

Without insight into team dynamics, results are left to chance. Behavioral analytics can provide insights that allow each person to easily understand how their new team members are wired. This can drastically reduce the time it takes to build cohesion among the group and make for more efficient and effective collaboration as project teams are regularly assembled and reassembled. Put simply, instead of using our energy to try to figure each other out, we cut through that noise so we can run faster.

Lastly, by creating a job profile and looking for candidates who fit the profile, we can cut out the biases that relationship-based recruiting can introduce to an organization.

"The alignment of business strategies and talent strategies is known as talent optimization."

Talent optimization goes beyond human resources practices, management consulting, and productivity tooling to describe a model that empirically aligns strategy and people practices. It weaves talent improvement practices into the everyday workings of a company to nurture and employ a workforce that is specifically calibrated to the company's strategic objectives. The sooner we utilize people data to look at our organization, the sooner we can spot potential blind spots. Leaders can then address the issues and focus on what's most important for their startup.

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This article was written by Wendy Fong, founder and principal of Chief Gigs, and originally appeared on Liu Idea Lab for Innovation & Entrepreneurship's blog.

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TMCi names 11 global startups to latest HealthTech Accelerator cohort

new class

Texas Medical Center Innovation has named 11 medtech startups from around the world to its latest HealthTech Accelerator cohort.

Members of the accelerator's 19th cohort will participate in the six-month program, which kicked off this month. They range from startups developing on-the-go pelvic floor monitoring to 3D-printed craniofacial and orthopedic implants. Each previously participated in TMCi's bootcamp before being selected to join the accelerator. Through the HealthTech Accelerator, founders will work closely with TMC specialists, researchers, top-tier hospital experts and seasoned advisors to help grow their companies and hone their clinical trials, intellectual property, fundraising and more.

“This cohort of startups is tackling some of today’s most pressing clinical challenges, from surgery and respiratory care to diagnostics and women’s health," Tom Luby, chief innovation officer at Texas Medical Center, said in a news release. "At TMC, we bring together the minds behind innovation—entrepreneurs, technology leaders, and strategic partners—to help emerging companies validate, scale, and deliver solutions that make a real difference for patients here and around the world. We look forward to seeing their progress and global impact through the HealthTech Accelerator and the support of our broader ecosystem.”

The 2025 HealthTech Accelerator cohort includes:

  • Houston-based Respiree, which has created an all-in-one cardiopulmonary platform with wearable sensors for respiratory monitoring that uses AI to track breathing patterns and detect early signs of distress
  • College Station-based SageSpectra, which designs an innovative patch system for real-time, remote monitoring of temperature and StO2 for assessing vascular occlusion, infection, and other surgical flap complications
  • Austin-based Dynamic Light, which has developed a non-invasive imaging technology that enables surgeons to visualize blood flow in real-time without the need for traditional dyes
  • Bangkok, Thailand-based OsseoLabs, which develops AI-assisted, 3D-printed patient-specific implants for craniofacial and orthopedic surgeries
  • Sydney, Australia-based Roam Technologies, which has developed a portable oxygen therapy system (JUNO) that provides real-time oxygen delivery optimization for patients with chronic conditions
  • OptiLung, which develops 3D-printed extracorporeal blood oxygenation devices designed to optimize blood flow and reduce complications
  • Bengaluru, India-based Dozee, which has created a smart remote patient monitor platform that uses under-the-mattress bed sensors to capture vital signs through continuous monitoring
  • Montclair, New Jersey-based Endomedix, which has developed a biosurgical fast-acting absorbable hemostat designed to eliminate the risk of paralysis and reoperation due to device swelling
  • Williston, Vermont-based Xander Medical, which has designed a biomechanical innovation that addresses the complications and cost burdens associated with the current methods of removing stripped and broken surgical screws
  • Salt Lake City, Utah-based Freyya, which has developed an on-the-go pelvic floor monitoring and feedback device for people with pelvic floor dysfunction
  • The Netherlands-based Scinvivo, which has developed optical imaging catheters for bladder cancer diagnostics

2025 Houston Innovation Awards winners revealed at annual event

The winners are...

After weeks of anticipation, the 2025 Houston Innovation Awards winners have been revealed. Finalists, judges, and VIPs from Houston's vibrant innovation community gathered on Nov. 13 at Greentown Labs for the fifth annual event.

This year, the Houston Innovation Awards recognized more than 40 finalists, with winners unveiled in 10 categories.

Finalists and winners were determined by our esteemed panel of judges, comprised of 2024 winners who represent various Houston industries, as well as InnovationMap editorial leadership. One winner was determined by the public via an online competition: Startup of the Year.

The program was emceed by Lawson Gow, Head of Houston for Greentown Labs. Sponsors included Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more.

Without further adieu, meet the 2025 Houston Innovation Awards winners:

Minority-founded Business: Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers and rubbers. The company reports that it plans to open its first commercial plant in the next 18 months.


Female-founded Business, presented by Houston Powder Coaters: March Biosciences

Houston cell therapy company March Biosciences aims to treat unaddressed challenging cancers, with its MB-105, a CD5-targeted CAR-T cell therapy for patients with relapsed or refractory CD5-positive T-cell lymphoma, currently in Phase 2 clinical trials. The company was founded in 2021 by CEO Sarah Hein, Max Mamonkin and Malcolm Brenner and was born out of the TMC Accelerator for Cancer Therapeutics.

Energy Transition Business: Eclipse Energy

Previously known as Gold H2, Eclipse Energy converts end-of-life oil fields into low-cost, sustainable hydrogen sources. It completed its first field trial this summer, which demonstrated subsurface bio-stimulated hydrogen production. According to the company, its technology could yield up to 250 billion kilograms of low-carbon hydrogen.

Health Tech Business: Koda Health

Koda Health has developed an advance care planning platform (ACP) that allows users to document and share their care preferences, goals and advance directives for health systems. The web-based platform guides patients through values-based decisions with interactive tools and generates state-specific, legally compliant documents that integrate seamlessly with electronic health record systems. Last year, the company also added kidney action planning to its suite of services for patients with serious illnesses. In 2025, it announced major partnerships and integrations with Epic, Guidehealth, and others, and raised a $7 million series A.

Deep Tech Business: Persona AI

Persona AI is building modularized humanoid robots that aim to deliver continuous, round-the-clock productivity and skilled labor for "dull, dirty, dangerous, and declining" jobs. The company was founded by Houston entrepreneur Nicolaus Radford, who serves as CEO, along with CTO Jerry Pratt and COO Jide Akinyode. It raised eight figures in pre-seed funding this year and is developing its prototype of a robot-welder for Hyundai's shipbuilding division, which it plans to unveil in 2026.

Scaleup of the Year: Fervo Energy

Houston-based Fervo Energy is working to provide 24/7 carbon-free energy through the development of cost-competitive geothermal power. The company is developing its flagship Cape Station geothermal power project in Utah, which is expected to generate 400 megawatts of clean energy for the grid. The company raised $205.6 million in capital to help finance the project earlier this year and fully contracted the project's capacity with the addition of a major power purchase agreement from Shell.

Incubator/Accelerator of the Year: Greentown Labs

Climatetech incubator Greentown Labs offers its community resources and a network to climate and energy innovation startups looking to grow. The collaborative community offers members state-of-the-art prototyping labs, business resources and access to investors and corporate partners. The co-located incubator was first launched in Boston in 2011 before opening in Houston in 2021.

Startup of the Year (People's Choice): FlowCare

FlowCare is developing a period health platform that integrates smart dispensers, education, and healthcare into one system to make free, high-quality, organic period products more accessible. FlowCare is live at prominent Houston venues, including Discovery Green, Texas Medical Center, The Ion, and, most recently, Space Center Houston, helping make Houston a “period positivity” city.

Mentor of the Year, presented by Houston City College Northwest: Jason Ethier, EnergyTech Nexus

Jason Ethier is the founding partner of EnergyTech Nexus, through which he has mentored numerous startups and Innovation Awards finalists, including Geokiln, Energy AI Solutions, Capwell Services and Corrolytics. He founded Dynamo Micropower in 2011 and served as its president and CEO. He later co-founded Greentown Labs in Massachusetts and helped bring the accelerator to Houston.

2025 Trailblazer Award: Wade Pinder

Wade Pinder, founder of Product Houston, identifies as an "Ecosystem Wayseeker" and is the founder of Product Houston. A former product manager at Blinds.com, he has been deeply engaged in Houston’s startup and innovation scene since 2012. Over the years, he has supported hundreds of founders, product leaders, and community builders across the Houston area. In 2023, he was honored as Mentor of the Year in the Houston Innovation Awards.

America's first Ismaili Center set to open in Houston in December

Sneak Preview

The long-awaited Ismaili Center, Houston is set to open to the public next month. The 11-acre site has been painstakingly designed and constructed to offer indoor and outdoor public spaces for Houstonians to enjoy, connect, and engage. As the only Ismaili Center in the United States — and seventh in the world — it joins its international communities in London, Vancouver, Lisbon, Dubai, Dushanbe, and Toronto.

Nearly 20 years in the making, the Ismaili Center, Houston features a prayer hall, rotating art installations, a black box theater, a cafe, numerous social halls for weddings and other events, and nine acres of outdoor space and landscaped botanical gardens. Involved parties hope that the community will see the space as an extension of the neighboring parks along the bayou, and have included a garden entrance to the north lawn and gardens at the corner of Montrose Boulevard and Allen Parkway.

While Houston is known for its many community engagement centers, the architects and designers believe that the seamless integration of indoor and outdoor spaces sets the Ismaili Center, Houston apart from all others.

“What we know is the connections between buildings, environment, quality of life, and landscape — this is nothing new,” structural and facade engineer Hanif Kara says. “But, certainly, it’s hard to see that in other developments, particularly when they are done by developers. It’s quite difficult to find community spaces, and to see how quality of life is improved for everyone. I think we’ve all experienced that kind of hope that it will play out something like this.”

Designed by Farshid Moussavi Architecture and Nelson Byrd Woltz Landscape Architects, the remarkable 11-acre site is designed both to receive LEED Gold certification and to withstand the tests of Houston’s sometimes extreme weather conditions.

Principal architect Farshid Moussavi looks forward to seeing the Houston community utilize the space she’s worked so hard to deliver: “We’ve given the hardware to the community, now the software needs to come in. So I hope that there will be music recitals, or lectures, or book fairs, or other kinds of markets that can happen—even simultaneously. This is not an experiment, it’s the seventh in the world.”

Community welcome events are scheduled for December 12 and 13, but, until then, here are 10 features and things to know about the Ismaili Center, Houston.

What is the Ismaili Center, Houston?

“The use of the building is really meant for, or our hope, is that we are able to—on an enhanced view of what the community does today—have engagement on service projects, arts and culture, interfaith dialogue, and even just in bringing people together,” Omar Samji, Ismaili Council for the United States of America, says. “The notion of bringing people together in a place where it is easy to create connections because it’s an open space, and because it’s specifically designed to be a place where people interact and where people find commonality. Because whether you’re out in the gardens, or on the environs, or in the atrium, this enables connection.”

Who is His Highness the Aga Khan?

His Highness Prince Rahim Aga Khan V is the 50th hereditary Imam (spiritual leader) of the Shia Ismaili Muslims and a direct descendant of the Prophet Muhammad. He was educated at Philipps Academy in Andover and Brown University (Class of 1995). He became Imam in February 2025 upon the passing of his father, His Highness Prince Karim Aga Khan IV.

The Aga Khan promotes an understanding of Islam rooted in values of generosity, tolerance, pluralism, environmental stewardship, and the shared unity of humanity. He also chairs the Aga Khan Development Network (AKDN), one of the world’s largest private development agencies, which works across more than 30 countries to improve quality of life for marginalized communities regardless of faith or background.

The scale

The center stretches across an 11-acre site along Montrose Boulevard, from West Dallas to Allen Parkway. The physical building is 150,000 square feet, leaving nine acres for garden spaces on both the north and south sides of the building. The south side of the property is more formal, with gardens and community spaces that flank an 80-foot reflection pool and other water features. The gardens on the north side of the building are more informal, but densely planted and vast.

Photo by Iwan Baan

The creation

The development of the Ismaili Center was led by the Ismaili Council. It was initiated by His Highness Prince Karim Aga Khan IV (1936-2025), and completed under the leadership of his eldest son, Prince Rahim Aga Khan V.

The project was designed and constructed by a team of both local and international firms. Farshid Moussavi Architecture joined forces with structural and facade engineer Hanif Kara, co-founder and creative director of AKT II. DLR Group is the architect and engineer of record, while contractor McCarthy Building Companies built the project. Thomas Woltz, senior principal and owner of landscape architecture firm Nelson Byrd Woltz, along with principal Jeff Aten taking lead on the nine acres of garden space. The project is targeting LEED Gold certification.

The focus on native Texas plants and trees

The center will be recognized as a leading cultural asset for the City of Houston, complementing nearby institutions such as The Menil Collection, Rothko Chapel, Asia Society Texas, and the Museum of Fine Arts, Houston. While the surrounding gardens will add to the other notable Nelson Byrd Woltz projects within close proximity at Memorial Park, Rothko Chapel, and Rice University.

“We’ve been building massive projects in Houston for 12 years,” Woltz says. “We know the horticultural community in the region, and we did a deep, deep dive in ecological research to understand ‘What are the native plants of whatever region?’ It’s just baked into our process. Right when we are starting any project in Houston—right to the river. Look at the soils, ‘What are the plants appropriate to that place?’ Its solar aspect, its humidity, it’s moisture in soils, the shadow of the building.

But then, this idea of taking a section across the state of Texas, so that each of those distinct ecological regions is represented by one of the terraced gardens — so it’s very clear. It’s a diagram of the state of Texas and all of its native plants. This is functioning like a botanic garden and a repository for biodiversity — this is work in service.”

The eco-friendly exterior

The exterior of the building is clad in stone, a durable material with low embodied carbon. The stone cladding is a rainscreen over in-situ ‘fair-faced’ concrete walls, exposed on the interior to minimize additional material use. The concrete mix used has replaced 35-62 percent of Portland cement with fly ash and slag, reducing CO2 emissions by roughly 30 percent compared to standard mixes. The exterior stone rainscreen uses smaller tiles to increase the stone yield, utilizing 20-25 percent more of the irregular blocks they are cut from. This reduction in waste has also lent itself to crafting the cladding in a unique way.

The tessellation of the stone pieces changes across the building's surfaces to create different patterns on different sides of the buildings and at the corners. Relief stone tiles are used to add texture to the facades.

The space for outdoor events

The north-facing botanical gardens that will accommodate the 200-year flood plain offer a 27 foot gradient toward the building. This allowed for various levels of seating and gathering areas that culminate at an elevated terrace that will act as a stage for various events such as plays and concerts. Attendees can stretch out and enjoy the shows from an extensive lawn area that is surrounded by dense gardens of native trees and plants.

The black box theater

A 2,600-square-foot black box multipurpose space which seats 125 people is found on the second floor of the building’s west wing. It can host public events, such as exhibitions, film screenings, theatrical performances, music recitals, and other artistic programs throughout the year. It will also serve as a flexible space for teaching and learning. With acoustic isolation to surrounding spaces and the mechanical mezzanine above, it is designed to operate simultaneously without disrupting other events in the building. Design includes an upper-level control room, pipe grid, and flexible drapery and seating configurations to allow for a wide variety of programming.

The cafe

The center’s café is a 1,600-square-foot, double-height space located in the west wing (Montrose side) that opens onto an enormous terrace, offering visitors the option to enjoy their coffee or food outdoors. The terrace near the cafe is lined by an exterior wall and long, trough-style fountains that aid in noise reduction from Montrose Boulevard. The second-floor wall overlooking the Café is fully glazed, creating visual connection with the levels above.

The prayer hall

The prayer hall is 12,240 square feet, featuring a unique structural system of seven interlocking squares, formed from steel beams spanning the 115-by-115-foot open space. These beams are clad in concrete to enhance durability, beneath which lies a two-layer perforated aluminum ceiling with integrated diffused lighting. Its intricate pattern recalls the traditional jālī screens of Islamic architecture creating a soft, seemingly infinite ceiling effect, adding to the serenity of the prayer hall.

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A version of this article first appeared on CultureMap.com