Culture Impact Trumps Culture Fit in Mergers

The most effective work on culture begins well before a deal is in full swing. With thoughtful preparation, a clear strategy and commitment to cultural alignment, organisations can improve their odds of achieving expected merger outcomes. Merger Cycle Most organisations start thinking about culture in earnest after a deal is signed or closed. Others, only when people start leaving the business – especially when people they want to keep start leaving in droves. All too late. To improve the chances of merger success, it is critical to have culture on the table well before diligence begins. Continue reading

M&A: How to Avoid Culture Clash

This post is by Jerome Parisse, originally published on the Walking the Talk website.  It is the first in a series that Jerome and I put together to introduce a unique Culture Masterclass for M&A Executives, developed jointly by Isely Associates International and Walking the Talk. 

Every merger or acquisition is undertaken to enhance business value, yet many fail to achieve expected outcomes because of a failure to effectively manage cultural risks and harness cultural opportunities. Data shows that up to 50% – 70% of mergers and acquisitions fail to achieve expected returns. In most of these underperforming deals, culture clash is at the top on the list of reasons for failure.

 

It does not have to be like this.

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