Culture - How important is it to the merger process?
According to research the failure rate of mergers and acquisitions sits between 50% - 80%. That seems like a wildly high number until you start thinking about bringing together companies (or investment partners) who come from different cultures, each with their own personality and way of doing business. Perhaps it’s not so surprising after all. Some insight into the importance of considering the impact of culture to the merger's success can be gained in this Forbes article.
Culture is a very fragile thing, it can’t be taken for granted. It takes time, resources, and commitment. Different visions, misaligned values, and/or disparate cultures can devastate a company’s delicate culture and destroy value – both financially and socially. Company culture is the only truly sustainable competitive advantage and the root cause of most acquisition’s failure or success.