Companies that fail to consider cultural synergy in M&A discussions can quickly turn profitable deals into crises, according to study by Cutting Edge Information. Companies who understand the implications of potential M&A partners' cultures have the best shot at pulling off profitable integrations.

These companies involve human resources teams early in the developmental phase of potential deals. Given time to conduct due diligence, HR veterans and other specialists can assess the cultural synergies – and stumbling blocks – in an upcoming corporate marriage. This evaluation allows decision- makers to more accurately assess the potential profit and risks associated with the deal.

"Companies that cannot work together will never realize the synergy savings promised during M&A strategy sessions," said Elio Evangelista, senior analyst at Cutting Edge Information. "Corporate culture plays such an important role in M&A success that many consistently successful companies will kill deals based on cultural incapability."

"Accelerate M&A Success: A Guide to Post-Merger Integration," available at http://www.cuttingedgeinfo.com/FL59_Accelerate_M&A_Success/index.htm , contains more than 250 metrics and features practices from more than 80 top integrators, including Pfizer, Hewlett Packard, Cisco Systems, IBM, GE and Exxon-Mobil. The report overviews five key success factors to help guide a successful M&A deal.

For more information, call (919) 403-6583 or visit http://www.cuttingedgeinfo.com/

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access