The Role of Company Culture in Mergers and Acquisitions

The Role of Company Culture in Mergers and Acquisitions
Author: Viktoria Undesser
Publisher: GRIN Verlag
Total Pages: 45
Release: 2016-04-28
Genre: Business & Economics
ISBN: 3668206945
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Bachelor Thesis from the year 2016 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, University of Linz (International Management), course: Current Issues in International Management, language: English, abstract: This thesis will provide a clear understanding of how and why company culture is such an important factor in M&A. First of all, mergers, acquisitions and company culture will be defined. Then, different types of company cultures are analysed regarding their mutual compatibility. This is followed by an explanation of how cultural integration can take place and how managers can facilitate it. Finally, important findings are summarized and discussed. As globalization progresses, so does the internationalization of companies. In the course of this development, over the last 30 years, the forming of mergers and acquisitions has become very popular. One of the greatest challenges in a merger or an acquisition is aligning the company culture of the merging partners before, during and after the merger. Company culture – or the lack of an integrated company culture - can crucially influence the success or failure of a merger or acquisition. However, in spite of the fact that there are a lot of ways to facilitate cultural integration, it is something that is often neglected in the planning phase, which makes it all the more difficult to accomplish successfully further along in the process.

Mergers and Acquisitions

Mergers and Acquisitions
Author: Mark E. Mendenhall
Publisher: Stanford University Press
Total Pages: 472
Release: 2005
Genre: Business & Economics
ISBN: 9780804746618
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This book examines the dynamics of the sociocultural processes inherent in mergers and acquisitions, and draws implications for post-merger integration management.

Diagnosing and Changing Organizational Culture

Diagnosing and Changing Organizational Culture
Author: Kim S. Cameron
Publisher: John Wiley & Sons
Total Pages: 256
Release: 2011-01-07
Genre: Business & Economics
ISBN: 1118047052
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Diagnosing and Changing Organizational Culture provides a framework, a sense-making tool, a set of systematic steps, and a methodology for helping managers and their organizations carefully analyze and alter their fundamental culture. Authors, Cameron and Quinn focus on the methods and mechanisms that are available to help managers and change agents transform the most fundamental elements of their organizations. The authors also provide instruments to help individuals guide the change process at the most basic level—culture. Diagnosing and Changing Organizational Culture offers a systematic strategy for internal or external change agents to facilitate foundational change that in turn makes it possible to support and supplement other kinds of change initiatives.

The Role of Corporate Culture in Mergers & Acquisitions

The Role of Corporate Culture in Mergers & Acquisitions
Author: Christa H. S. Bouwman
Publisher:
Total Pages: 31
Release: 2013
Genre:
ISBN:
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Corporate mergers are an important driver of growth, and yet many mergers fail to produce value for the shareholders of the acquiring firms. Survey and anecdotal evidence suggests that corporate culture is central to the success of mergers and acquisitions (M&A), and that cultural differences are an important causal factor in merger failures. However, there is little either by way of theory or by way of large-sample empirical evidence in Finance and Economics on the importance of culture for M&A performance, although there appears to be growing interest in this area. There is a fairly substantial literature in Organizational Behavior, however, on this subject.To provide a perspective on the role of culture in mergers and outline an agenda for future research that can be built around the key questions whose exploration promises to extend the frontiers of knowledge in this important area, this chapter critically reviews the Organizational Behavior and Economics literatures on corporate culture. Some survey and anecdotal evidence on the effect of culture on M&A is discussed as motivation and also to surface questions that could be more systematically addressed through research. The goal of the chapter is to both acquaint the reader with the research that has already been done in this somewhat nascent area and to facilitate the development of an agenda for future research.

Achieving Post-Merger Success

Achieving Post-Merger Success
Author: J. Robert Carleton
Publisher: John Wiley & Sons
Total Pages: 233
Release: 2004-07-16
Genre: Business & Economics
ISBN: 0787972916
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“The failure rate of mergers and acquisitions is unreasonable, unacceptable, and unnecessary,” say Claude S. Lineberry and J. Robert Carleton in this much-needed resource, which outlines their unique, proven, and practical process for increasing the success of mergers and acquisitions. Written for all those with a vested interest in the success of the deal—board of directors, executives, managers, employees, and shareholders—and based on years of research and real-world experience, Achieving Post-Merger Success is a down-to-earth guide that gives stakeholders the tools they need to Profile and assess corporate cultures Identify potential or actual culture clash barriers to a merger or acquisition Determine what to do to avoid, minimize, and resolve culture clash Plan for efficient and effective post-merger cultural integration of the two organizations

Strategic Alliances, Mergers and Acquisitions

Strategic Alliances, Mergers and Acquisitions
Author: J. M. Ulijn
Publisher: Edward Elgar Publishing
Total Pages: 305
Release: 2010-01-01
Genre: Business & Economics
ISBN: 184980561X
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Organizational flirts and marriages alliances, mergers and acquisitions are dramatic examples of how soft cultures can produce hard facts of success or failure. Decisions born from human vanity can lead to destruction of human capital. The chapters selected by Ulijn, Duysters and Meijer illustrate the many facets of organizational family life for the scholar and, hopefully, for the decision-maker who considers another move. Geert Hofstede, author of Culture s Consequences This unique book focuses on the link between different types of culture (national, corporate, professional) and the success of strategic alliances, mergers and acquisitions. Over the past decades we have seen a significant increase in the number of strategic alliances, mergers and acquisitions. Despite this proliferation many recent studies have reported high failure rates. This failure is often attributed to cultural differences between partners, which has led to a growing body of literature on the subject. To date, most of these studies have focused on national and corporate culture, whereas this book also places particular emphasis on the importance of culture at the professional level. The authors clearly show that all three levels of culture may have a profound impact upon the ultimate success or failure of alliances, mergers and acquisitions. Researchers in the field of international business, strategic management, and strategic alliances, mergers and acquisitions will find this book to be of invaluable interest. Managers in multinational corporations and international business students should also not be without this important resource.

Integration of corporate cultures in mergers

Integration of corporate cultures in mergers
Author: Michael Kofler
Publisher: GRIN Verlag
Total Pages: 14
Release: 2010-06-07
Genre: Business & Economics
ISBN: 3640638824
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Studienarbeit aus dem Jahr 2009 im Fachbereich BWL - Unternehmensführung, Management, Organisation, Griffith University, Sprache: Deutsch, Abstract: 1. Introduction The case study Grape Expectations: A Case Study of the Southcorp-Rosemount merger, (Rice & Galvin, 2005) provides a basis to identify an issue of mergers, which will be analysed in this research report. The case study deals with the Australian wine industry and particularly examines the acquisition of Rosemount Southcorp. Therefore, it illustrates the goals of the merger and the problems resulting from the merger of the two companies. The research report will deal with the potential problem that results from the concurrence of different corporate cultures in mergers, as “in preparing for mergers, acquisitions, joint ventures, and alliances, the emphasis is often on financial, legal, and technical matters [but] the cultural factor is often neglected” (Trompenaars & Prud’Homme, 2004). Furthermore, the report will explain the different strategies used to deal with the different cultures and will concentrate on the integration strategy and argue that it is the most appropriate strategy in most mergers. 2. Problem identification 2.1. Issue: Corporate culture in mergers Researchers, investors, and the market are showing an increasing interest in corporate culture issues when it comes to mergers and acquisitions (Schraeder & Self, 2003). However, “while most firms recognize the critical importance of human and cultural issues in a merger, these issues are especially hard to analyze and quantify” (Camara & Renjen, 2004). Furthermore, the prevailing consensus in business literature is that problems regarding corporate culture are the most likely ones leading to unsuccessful mergers.

The role of different corporate culters in case of a merger

The role of different corporate culters in case of a merger
Author: Thomas Weihmann
Publisher: GRIN Verlag
Total Pages: 31
Release: 2007-04-19
Genre: Business & Economics
ISBN: 3638621669
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Research Paper (undergraduate) from the year 2007 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of Cooperative Education Bad Mergentheim, language: English, abstract: Never before in history has the convergence of companies been that intense like in the year 2006. Gaining market share immediately, cutting costs through consolidation, expanding product lines or obtaining reputation are just a few ideas behind an acquisition or merger. Mergers and acquisitions rose in US Dollars to a new high from the peak in the year 2000 with 31.022 mergers and acquisitions and a capital flow of 3.332 billion US Dollars to 29.008 M&As and 3.568 US Dollars dated by 28th November 2006. An interesting aspect is that four out of the five largest transactions in 2006 did take place in Europe and not in America. Germany has the fourth largest merger and acquisitions market in the world with 1.488 transactions and a volume of 145,1 billion US Dollars in 2005. According to an analyst from Goldman Sachs, one of the biggest players in the M&A business, the M&A market is going to stabilize on the high level of 2006 also in the continuing years. Mergers and acquisitions are not a new topic in the age of globalization but with rising competition, price wars and merging markets it seems for many companies the only backdoor. However every second transaction is value-destroying and the aimed synergies remain a vision and never get realized. Bigger, stronger and more profitable are the key arguments for mergers and creating competitive advantage due to economies of scale. The core challenge often heard by management is to 85 % the integration process. Especially cultural differences are not taken into account properly. The centre stage of this study is to analyse how corporate culture and mergers melt together or collide and the reasons why so many companies fail. It covers the steps of a merger process and how the corporate culture can be aligned. The study can not examine explicitly the integration process like the due diligence method but it is a brief overview on what to be aware of when thinking about summing up synergies in mergers and acquisitions with different corporate cultures. It reveals that in the M&A business you can not set up the equation that one plus one is equal to two.

Mergers and Acquisitions

Mergers and Acquisitions
Author: Amy L. Pablo
Publisher: John Wiley & Sons
Total Pages: 288
Release: 2009-02-09
Genre: Business & Economics
ISBN: 1405142375
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This book reviews both successful and unsuccessful mergers andacquisitions, exploring the reasons why so many fail to live up toexpectations. An exploration of why mergers and acquisitions succeed or fail,based on rigorous scholarly research. Stretches the boundaries of what we know about these complexphenomena. Presents original ideas about the merger and acquisitionstrategy, the effects of mergers and acquisitions on performance,and the critical processes involved in implementation andintegration. Explores new areas, such as the role of culture and leadership,and the importance of knowledge transfer and learning. Includes contributions from both highly respected scholars andup-and-coming stars in the field.