How to Blend Company Cultures in a Merger
Considering an acquisition? Learn to minimize a potential blow to employees and maximize the value of existing talent.
Q: I'm considering acquiring a competitor. What do I need to know about merging two cultures?
A: We bow to you for thinking about this issue ahead of time. Approximately 65 percent of mergers and acquisitions fail. "The No. 1 reason is a poorly planned and managed integration," says Alan J. Smith, CEO of San Francisco-based Bay Pacific Group, an M&A consulting firm. "Executives underestimate the challenge involved in successfully blending corporate cultures."
Don't believe it? Look what happened when behemoths Daimler-Benz and Chrysler tried to get together. It was called a "merger of equals," but one company always dominates, Smith says.
Continue reading this article - and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.
Entrepreneur Editors' Picks
-
This Co-Founder Was Kicked Out of Retailers for Pitching a 'Taboo' Beauty Product. Now, Her Multi-Million-Dollar Company Sells It for More Than $20 an Ounce.
-
Have You Ever Obsessed Over 'What If'? According to Scientists, You Don't Actually Know What Would Have Fixed Everything.
-
After He Was Fired From the UFC, This Former Fighter Turned His Passion Into a Thriving Business
-
Most People Don't Know These 2 Things Are Resume Red Flags. A Career Expert Reveals How to Work Around Them.
-
How One Woman Turned Pandemic-Induced Boredom and a Makeshift Garage Art Studio Into a Thriving Franchise
-
Use These 4 Self-Care Rituals for More Resilience and Less Depletion
-
Shark Tank's Barbara Corcoran Wants to Invest in 'Someone Who Probably Needs a Good Shrink Instead of a Business'