Search results

Due diligence refers to a comprehensive process of investigating and evaluating business opportunities in mergers and acquisitions. While early-stage due diligence usually encompasses financial and strategic assessment, one of the most important things in due diligence is looking at organizational culture at an early stage. This chapter takes stock of the existing research and practice in the area of cultural due diligence and evaluates the strengths and limitations. Based on the review of literature, we developed a framework for cultural due diligence to address the limitations of existing approaches. The framework illustrates a process to screen the M&A targets, gain insight into the target firm’s culture, and identify integration challenges. The process starts with more unobtrusive, indirect, and informal assessments of the target firm’s culture and moves onto more obtrusive, direct, and formal assessments.

A brief review of merger and acquisition (M&A) publications, while indicating high failure rates, also indicate that few studies have neither focused on the pre-merger period nor the contributions from leaders and managers, and especially during that period. Additionally, there are limited “behavioral due diligence” (BDD) assessment(s). This chapter begins with a brief overview of definitions. It continues with a data-driven presentation focused on the limited publications and research of M&A pre-mergers (compared with the post-M&A period). This is followed by discussions on M&A-related BDD and leader/manager tasks, activities, and issues. These dialogues set the foundation for M&A actions, and research, focused on leaders and managers relative to BDD in the pre-merger phase. This chapter will close with recommendations of “going forward” and a conclusion.

This chapter examines recent practices being adopted in the Precombination Phase of a merger or acquisition–a period that typically has not been utilized by leaders to put deals on the track toward success. We begin by briefly reviewing the M&A process and highlighting the success factors and common problem areas in each of the three phases of a deal. We then discuss emerging trends in making the Precombination Phase more successful, including conducting a more thorough due diligence, setting a vision for the combined organization, accelerating early integration planning, and establishing integration principles and priorities.

This paper offers an approach to deal with the value destruction caused when culturally incompatible organizations merge.

A field-tested Cultural Comparison and Integration Model is demonstrated. 10;

The model illustrates how managers can compare and integrate cultures of combining firms using “cultural levers”.

A case example of the model in practice is included.

The model has been tested in a large and medium size organizations in a variety of industries and nationalities.

Cross-border M&A has become one of the leading approaches for firms to gain access to global markets. Yet there has been little progress in the research literature exploring the role that culture may play in the success of these ventures. Poor culture-fit has often been cited as one reason why M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg, 2006). Cross-border M&A has the added challenges of having to deal with both national and organizational culture differences. In this chapter we review the literature on cultural integration in cross-border M&A and provide a framework designed to help manage the integration process throughout the M&A lifecycle. This framework presents culture assessment and integration as a crucial component to reducing poor culture-fit as a barrier to M&A success.

Organization development is focused on implementing a planned process of positive humanistic change in organizations through the use of social science theory, action research, and data-based feedback methods. The role of personality in that change process, however, has historically been ignored or relegated to a limited set of interventions. The purpose of this chapter is to provide a conceptual overview of the linkages between personality and OD, discuss the current state of personality in the field including key trends in talent management, and offer a new multi-level framework for conceptualizing applications of personality for different types of OD efforts. The chapter concludes with implications for research and practice.

Scholars have been conducting serious research on the human, organizational, and cultural aspects of mergers and acquisitions (M&A) for 30 years. Yet, over this period, there have only been modest improvements in the M&A success rate. In this chapter, the author examines corporate combinations, describes how human factors contribute to their failure or success, and identifies key research questions whose answers can help to improve the M&A success rate in both financial and human terms. The author proposes research questions for the key phases of a deal, including buying a company and putting companies together. And, reflecting an emerging trend among some frequent acquirers to build an internal competence in M&A execution, the author also proposes research questions for how to accelerate the process of learning from past combinations to better manage future ones.

Mergers and acquisitions (M&) are increasingly becoming a strategy of choice for companies attempting to achieve and sustain competitive advantage. However, not all M&As are a success. In this paper, we examine the three main reasons highlighted in the literature as major causes of M&A failure (clashing corporate cultures, absence of clear communication, and employee involvement) in three Indian pharmaceutical companies, and we analyze the role played by the HR function in addressing them. Also, we discuss the importance of gaining the commitment and focus of the workforce during the acquisition process through employee involvement.