Culture Clashes in M&A

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Culture Clashes in M&A
Many studies report that up to 80% of M&A are failing to create value and this is mainly due to culture clashes during the integration phase. Some authors have suggested that like financial and operational, a Cultural Due Diligence should be executed to identify cultural problems and shared values (according to McKinsey model). This process is also called Bicultural Audit and can be developed in 3 steps:
1- Culture Gaps Identification
2- Culture Gap Analysis
3- Culture Bridging.

Culture Clashes in M&A
Jos Huizer
Good point! Prior to any M&A it is all about the "up"side, while talking down the effects on the "down"side (after all, who invests in Downers?). Culture merging is dealing with that latter. Further, Cultural mergers need long term planning Balance sheets may quickly change, people tend to change a lot slower. I speak here from my studies and own experience. Culture DD may be a good thing, to draw the paradigms of the companies and their stakeholders (!) so that the new team realizes what they are up against. How about a "Director of Culture" sort of title to show the seriousness?

Procedural Changes in M&A
In a number of cases, from my experience, procedural changes which are introduced from the new owners tend to slow the cultural change. This can happen if the current staff are not included in the change process and have the new procedure forced upon them.

Good point, I have experienced this first hand

Culture clashes in M&A
The culture identification process should be done even before start of acquisition process. The role of HR and Integaration manager would be much easier in this stage. In the post acquisition the role of the HR and integration maanager is vital and inevitable.

Culture Clashes in M&A
Mattias Ansebo
This culture identification process is an area that I would like build a career within. At the moment I am trying to find a suitable course of action to reach this. What would you recommend? A job at a management consultant firm or a position at a larger company that has performed many M&As? I appreciate your input.


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