Cultural Clashes within Organizations

This topic contains 3 replies, has 4 voices, and was last updated by  Brandon Kissinger 2 days, 13 hours ago.

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    Matthew Chatelain

    Would be curious to understand other M&A experiences, where employees of one organization felt severe culture shock upon merger with another organization. We have witnessed situations where acquisitions did not go according to plan as a result of different decision-making styles, leadership hierarchies, and change management approaches. However, has anyone experienced a situation where cultural integration was initially questionable, but eventually, the integration was deemed successful from a human capital perspective, and if so, what techniques were implemented to get to that point?


    Awais Dilawer

    Being Culturally Fit is the foremost requirement for the organization for making the decision to acquire a firm. Culture differences turns out to be a disaster and source of big loss for the companies


    Clark Murphy

    Absolutely Awais. It should be the first requirement of any acquisition opportunity. If there is a culture clash, then the transaction will most likely cost a lot of money to the acquiring company and would provide no value. That being said, if the transaction is only IP based, then that might not be a requirement. However, the seller might not want to sell the company to the potential acquirer if that were the case.


    Brandon Kissinger

    What seems to be the most difficult is assessing potential cultural clashes. While firms like Vista Equity Partners require all employees to take a competency test, this seems to be done after the acquisition is completed. Along these same lines, I can imagine that you could only interview the most senior leaders (small sample size) to gauge the cultural fit of an acquisition.

    Are there steps one can take to get a feel for say 70% of the organization prior to an acquisition?

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