Culture Clashes in M&A

Post-Merger Integration
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Arnaud, France

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.

  Jos Huizer, Netherlands
 

Culture Clashes in M&A

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?

  ColDow, New Zealand
 

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 c...

  John, England
 

France

Good point, I have experienced this first hand...

  Ramesh, India
 

Culture clashes in M&A

The culture identification process should be done even before start of acquisition process. The role of HR and Integara...

  Mattias Ansebo, Sweden
 

Culture Clashes in M&A

This culture identification process is an area that I would like build a career within. At the moment I am trying to fin...

 

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