Senn Delaney “a Heidrick & Struggles Company”: Cultural Clash in Mergers and Acquisitions

Reports indicate that one third of mergers fail within five years and 80 percent never live up to their full expectations. In a recent report Senn Delaney described best practices to ensure success in a merger or major acquisition. Aside from the strategic, financial and other criteria considered during a merger, leaders should beware of the potential clash of cultures. A lot of evidence finds the success of a merger hinging on the time it takes to align cultures. Yet this is one of the areas that receive the least of executives’ time compared to other aspects of the deal.

The following are best practices for creating a successful merger:

• Retain key people
• Communicate the vision
• Address the new organization structure as early as possible
• Clearly state the nature of the union
• Create an integration plan

The full report is published on Senn Delaney’s website. Read the full report.