Mergers & Acquisitions Integration Handbook, 2nd Edition

CHAPTER 11Managing Culture and Change During M&A

In this chapter, you will learn:

• What “culture” is in the context of an M&A event
• Some guiding principles and objectives for managing cultural integration as part of the IMO process
• Tactics to assess culture
• Change management impacts during M&A

As well-known author Curt Coffmann says, “Culture eats strategy for lunch.” Any significant M&A event when you are bringing multiple companies together is likely to have some kind of culture dynamic. Many define culture as the shared values, beliefs, and norms that influence how employees work, interact, and perceive their respective organizations. The quote suggests that even the best strategy can’t overcome a cultural integration problem, so paying attention to culture during M&A is important.

It is important that you know enough about cultural integration to recognize when you need to formally address it as part of the M&A integration process. Cultural clashes are bound to occur on some level with any integration, but if left to fester, they can become a problem that destroys morale and productivity and can adversely affect business results. So don’t underestimate the challenge of integrating cultures during M&A.

WHAT IS CULTURE EXACTLY?

Cultural integration stumbles and neglecting the change management requirements of new or different operating models can undermine realization of the deal thesis and impede integration efforts.

But what is culture exactly? Having a pragmatic common ...