Difficulties encountered in M&As are amplified in cross-cultural situations, when the companies involved are from two or more different countries.
Merger success is possible; however, being part of the 17% that succeeds, rather than the 83% that does not deliver, requires more than insight. Merger success is based on acceleration, concentration and creating a critical mass for operational change (adaptation).
Up to the point in the transaction where the papers are signed, the merger and acquisition business is predominantly financial - valuing the assets, determining the price and due diligence. Before the ink is dry, however, this financially-driven deal becomes a human transaction filled with emotion, trauma, and survival behaviour - the non-linear, often irrational world of human beings in the midst of change.
In the case of international mergers and acquisitions, the complexity of this process is often compounded by the difference in national cultures. People living and working in different countries react to the same situations or events in very different manners.
Therefore, a company involved in an international merger or acquisition needs to consider these differences right from the design stage if it is to succeed.
Need help or support with cultural issues?
Then contact us now at expatknowhow:
http://www.expatknowhow.com/menus/main.asp?PN=Contact
http://www.expatknowhow.com/
Follow us on twitter @expatknowhow
or sign up to our Blog http://www.expatknowhow.blogspot.com/ for more know-how
