There are many different reasons. Shy a startup might merge with, acquir. Sr be acquir by another company abroad, and international expansion is one of the more common reasons. There are more companies combining around the world today than ever before in order to:
-create economies of scale
Government studies from a number of countries show. Shat global companies are over 30% more profitable than companies that don’t expand beyond their borders. One could assume that M&A would increase the likelihood of success, however, studies show that up to 2/3 of all mergers & acquisitions fail to add shareholder value. Much of the inability to add value is being attribut to an inability to integrate culture and human resources despite the business metrics making sense.
A lot of research is done prior to merging or acquiring companies, but most of it centers around financial feasibility. After the merger or acquisition has taken place, it’s more of an operational exercise focus on logistics, not focus on the softer cultural factors which can derail the entire success.
This lack of focus on culture may be because the people who are in the middle of the deal are often culture-blind. They are unable to see what influences their own cultural behavior and the cultural factors that create meaning for either of the companies. A second reason is that it’s hard to do extensive research on a company’s culture in advance without tipping your hand about the deal in the making. Thirdly, culture is hard to identify, measure, and impact so it’s often left as an afterthought or not address well at all.
If culture plays such an important role in the ultimate success of a france telegram data merger or acquisition, it pays to understand it better.
What is Culture?
er variables. Mergers and acquisitions within a culture can be tough – adding if you want to have a complete and advanc digital marketing profile in the layer of distinctly diff bw lists erent cultures brings much more complexity and opportunity for issues.