Merger Integration


Merger Integration

If you are in the business of acquiring and merging firms, you  are also in the culture management business. 

Merger success is not the norm.

Several studies in the early 1990’s on acquisitions by leading consulting organizations and universities revealed more or less the same findings:

  • less than 40% paid for their cost of capital, less than 25% created any appreciable value, and nearly 50% were later divested at significant losses to shareholders.
  • the inability to integrate cultures and management styles was cited as a leading cause of merger failure.
  • the more successful acquiring firms generally placed a higher priority on culture management and integration and were more capable in this managerial skill.
  • the less successful acquiring firms generally placed a lower priority on culture integration and management and were less capable in this managerial skill.

the ethics of merger integrationWe can help you diagnose, estimate, plan, and manage the culture factors involved in your acquisitions using our online survey. A relatively small investment in information can significantly help your chances of success!

Get the culture management skills mergers require. We can show you how to identify and prevent culture failure so they will not spoil your merger plans.

 

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