Is it better to acquirer a company with the same culture as the target?

This topic contains 13 replies, has 13 voices, and was last updated by  Ceri Barton 2 months, 1 week ago.

Viewing 14 posts - 1 through 14 (of 14 total)
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  • #118512

    Sarah
    Participant

    Is it better to acquirer a company with the same culture as the target?

    #118834

    Matthias Arnet
    Participant

    If a full integration is planned yes. Of course it depends on many factors (company size, which sector etc.), but generally it is easier to integrate if the companies share the same fundamental values and principals and way of working. If there is a big gap in the culture, more resistance to change and related difficulties can be expected.

    #119061

    Christian Münnich
    Participant

    That depends, I guess. A similar culture can smoothen the PMI process.

    #119066

    Neither better nor worse. Culture merely poses challenges to the merger, either easier or more complex depending on how similar or different the cultures are. Similar cultures are easier to integrate than highly different cultures. The latter will require far more change management skills to overcome resistance. Whether better or worse, that it a function of the transaction thesis. Can the reasons for the transaction successfully be attained and sustained long-term whether the cultures are similar or different? If the answer is yes in either case, then execute. Otherwise, resolve discrepancies or abandon the merger. If you cannot achieve the outcomes desired and sustain them, money is just being thrown out and people’s lives upheaved for no reason.

    #119240

    NILTON YONEZAVA
    Participant

    In my opinion, f you are planning to have an integrated operation, the more similar the culture, the better. Not only will the integration be easier but finding joint value creation as well.

    #119263

    Peter Sakaitis
    Participant

    In my opinion, having largely different cultures is a big risk and work around, so the closer the cultures (if you can find a target with a close culture fit), the better

    #119348

    Michael Hubsmith
    Participant

    I think it is Ok to have very different cultures initially in the integration process but to address it head-on with a cultural committee to help build a bridge between the two cultures. if it is left to fester it will.

    #119363

    Cesar Otero Lucas
    Participant

    Of course it is easier, but i am not sure if it is better. The key point is to reach a common culture at the end of the process, integrating the best practices of each company.

    #119430

    VishnuVardhan A
    Participant

    same culture or not as long as the customers demands are understood and met its all good.

    #119510


    Participant

    Yes!

    #119538


    Participant

    Not essentially

    #119571

    Matthias Arnet
    Participant

    Agree with most of the comments from above, it is generally easier to acquire a company with a similar culture. Hence, cultural assessment is part of the DD and has to be judged, can even be a deal-breaker. On the other hand, when having a different culture and if it is recognized as a crucial topic by itself to form a new common culture, it still might work (with lots of efforts).

    #119819

    Manuela van Ulzen
    Participant

    As an immediate response I would say yes however thinking it through it is also bearing some risks: maybe you underestimate the importance of change management and communication. Some culture so not a lot CM needed. In any case, if same or different culture you should follow the same steps during the integration and have a communication plan in place.

    #120089

    Ceri Barton
    Participant

    I’d say that proposed transactions and negotiations are not often terminated due to differences in culture, which is why it is crucial that the leadership teams do everything to stop culture from undermining their desired goals.

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