Working Abroad - Cultural Differences impact Mergers and Acquisitions

According to a KPMG study, "83% of all mergers and acquisitions (M&As) failed to produce any benefit for the shareholders and over half actually destroyed value". It was cited that the overwhelming cause for failure "was the people and the cultural differences".

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/
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Cultural Issues - Mergers and Acquisitions

Companies in Mercer Study "Very Concerned" about Top Talent Departure

Only a small number of companies analyze cultural issues as part of their integration plans for mergers and acquisitions, according to feedback from global human resource leaders attending Mercer’s M&A Ready™ workshops. Only 25 percent of respondents indicated their company had a process for addressing cultural issues to ensure more successful business integrations.

According to Mercer, most companies seem to have a strong awareness of culture and talent issues in M&A situations. Regarding the risk of top talent departing the organization following an M&A transaction, virtually all attendees said they were concerned, with 46 percent saying they were “very concerned.” When queried about the level of prominence of people issues in M&A situations, 64 percent of respondents said that people issues are more prominent today compared to one or more years ago.

“It’s a concern that well considered cultural integration plans and processes are seemingly absent in many organizations planning M&A deals,” said Chuck Moritt, senior partner in Mercer’s M&A consulting business. “While many acquisitive organizations are aware of culture-related risks that surface in transactions, few organizations are doing enough to mitigate those risks ahead of time.”

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

Working Across Cultures - Milton Park Event

Do you work at Milton Park or nearby in Oxfordshire?
Do you travel and work abroad for Business?
Do you work with people from different Cultures?
If so we would like to invite you to a free lunchtime event that will be taking place at:


The Advanced Business Solutions Campus - Abingdon and Witney College - 5G Milton Park

Wednesday 16 February from 12.15-13.15:

Title: Working across Cultures - How to Maximise Performance


The international nature and global reach of many businesses requires most of us to interact with colleagues from different cultural backgrounds as part of our jobs.

This informative seminar will address how to;

• Communicate effectively with colleagues from different cultural backgrounds

• Develop effective cross-cultural business relationships

• Successfully manage a multi-cultural team and get the best results from them

• Prepare staff for long-term overseas assignments

• Organise a successful overseas business trip



To find out more about this event and to sign up to attend please go to the following link:

www.expatknowhow.com/talk

We hope to see you there.

 

Managing Global Virtual Teams

Further to my last post on managing virtual teams I found some great information on wikibooks:
http://en.wikibooks.org/wiki/Managing_Groups_and_Teams/How_Do_You_Manage_Global_Virtual_Teams%3F

For bespoke cross-cultural training programs both online and face to face contact us @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/

Happy Teams....

Managing Virtual Teams - misunderstandings arising from cultural differences

A new report from the Economist Intelligence Unit, Managing Virtual Teams: taking a more strategic approach, highlights the prevalence of virtual teams and the methods by which they are managed.


The accompanying survey of over 400 executives from around the world found that, while 78% now work, or have worked, in a virtual team, this kind of teamwork has many problems, two of the biggest being misunderstandings arising from cultural differences – a strong argument in favour of cross-cultural training – and the general difficulty of leading people from a distance.
See more of the article @ www.eiu.com/sponsor/NEC/virtualteams

For bespoke cross-cultural training programs both online and face to face contact us @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/