M&A: How To Manage The Clash Of Cultures

 Any merger or acquisition aims to drive profitable growth. However, it is quite often ignored that the success of such endeavours not only depends on time and budget, but on employees’ buy-in for change.

Merging two companies can be a smart move from a business development perspective. However, the most promising deal will fail if the two parties cannot bridge the cultural divide and adapt to the new set-up.

According to estimates, 50-80% of all mergers fail from a business perspective, simply because there is not enough focus on the cultural integration of the two organisations*. Take the merger of Daimler-Benz and Chrysler as an example. The organisational culture at Daimler-Benz was described as “conservative, efficient and secure” while Chrysler was said to be “bold, diverse and creative”. On paper, the two companies could have been a great match. In reality, the integration failed due to insufficient attention to cultural differences.