April 18, 2023 at 1:38 pm #78325Janani RavishankarParticipant
In today’s unprecedented times, M&A activities are abound, especially in the High-Tech space. For example, let us consider Company A who wants to acquire Company B for its Technology / Product offerings. However, from publicly available data, it is evident that Company A is more hierarchical and has a totally different culture in comparison to Company B which is more open, transparent and balanced. In this case, it is clear that for the integration synergies to be successful, cultural integration is critical. While there are suggested approaches / ideas to integrate the two cultures, it seems next to impossible to align both and realize integration synergies within the defined timelines (eg: 1.5 / 2 years). The souls of the two organizations need to reinvent and modify themselves for better alignment. Given this, is it really possible to integrate dramatically different organizational cultures?April 21, 2023 at 9:18 am #78464Fumiya IgarashiParticipant
I’m sure it is so very difficult and that is why the merger between Daimler-Benz and Chrysler failed as my understanding. How about let Company B be stand-alone?April 21, 2023 at 8:39 pm #78488BetiParticipant
Yes, it is really a challenge, the leadership team needs to understand how they have worked traditionally and to consider whether that’s the right way to work going forward..it can be the culture the company wants to drive going forward is not even matching the culture they have brought into thisApril 22, 2023 at 12:05 pm #78502Ksenia SukholovskayaParticipant
I believe this is a very important topic which need to be part of every Due Diligence. If during DD it will become clear that the cultures are very different, acquiring company need to develop a long term full picture plan how to deal with it. What are the synergies? How to realize them? Will the synergy be there if the culture of the company will change? Or is it people who are the synergy? Is it maybe the different culture which makes the synergies possible? Which kind of integration do you want? How to proceed with it? All the questions need to be well understood and answered during the whole way of Acquisition. I believe everything is possible. It only needs professional and dedicated work from beginn onwards. And communication to both parties and between both parties. Explanations why we do it one way or another.
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