July 2, 2021 at 11:36 pm #38793
Even though companies recognise culture as a key factor in the M&A’s ultimate success, most of them fail to conduct cultural due diligence before they finalise the deal. One of the main causes, for deals not delivering value to their full potential post-merger, is failure to realise significant synergies.
Successful transactions require a holistic view of culture at an early stage, and a strong focus on people-related issues.
Research has found that 83% of M&A fail to create their intended value, with clashes between organisational cultures being one of the most frequently cited reasons for failure.
One of the main barriers to success for organisations is the collision of cultures and not knowing what to do about it.