M&A Cultural Due Diligence
Making a merger or alliance? One of the key causes of why M&A's fail to achieve their expectations is culture clash. Financial audits are done as a matter of course but cultural audits are seldom done. An M&A cultural audit as part of an integration plan, can identify similarities in culture as well as differences leading to tribalism and clashes. Who are the most receptive to change? Who will be most resistant to it? What rewards other than money will motivate the best to stay?
An M&A culture audit can indicate ways that behaviour can be brought about by people with different values to make integration work based on the true needs of employees. Value-based solutions will mitigate the symptoms of low productivity, attrition and ultimately declining operational and financial performance.