[Cody Eberhardt]

During M&A, how impactful is culture on the success or failure? Can a company that has very little in common culturally still have a successful integration? Is the amount of work that would likely need to take place worth the potentially upside of the integration?

[Daniel Nur Hakim Ismail]

Culture is a crucial factor in M&A success or failure. Companies with different cultures can still have a successful integration, but it can be challenging. The investment in understanding and aligning cultures is worth it, as a strong cultural fit can enhance M&A success, retain key employees and customers, improve operational efficiency, and increase profitability.

[Jacob Jian Feng Jarabejo]

Culture plays a critical role in the success or failure of M&A integration. The cultural differences between two organizations can lead to challenges in aligning processes, systems, and values. The lack of cultural alignment can cause employee disengagement, resistance to change, and an overall lack of cohesion within the merged organisation. These issues can negatively impact the business’s financial performance and the long-term success of the M&A transaction.

For example, if a company has a more formal and hierarchical culture, and the acquiring company has a more informal and collaborative culture, this difference in management style can cause confusion and lead to conflict among employees. Similarly, if a company values speed and agility while the acquiring company emphasizes quality and long-term planning, there could be clashes in how work is prioritized and executed.

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