CASE STUDIES

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Evaluate the People Factors that could Potentially Derail an Acquisition

Client: Global Agribusiness Group; Location: USA

Client Brief

The client was involved in planning to acquire and integrate two companies that had complementary technology. The success of the venture depended upon achieving synergies from the acquisition.

Many mergers and acquisitions fail because of a clash between the norms that regulate behaviour in the acquiring party and the acquired parties.

The client wanted to assess the behavioural issues that could prevent the parties from realising the required synergies from the acquisition and the business risk associated with this. This assessment would provide a foundation for a plan to mitigate any cultural differences.

 

Method

Using a combination of qualitative and quantitative techniques, we conducted a ‘cultural audit’ as part of the due diligence process to assess culture in the acquiring firm and in the targets.

We worked with senior management from both entities to consider the issues that needed to be addressed to ensure successful integration and delivery of required synergies.

 

Outcomes

Both parties to the acquisition gained an understanding of the issues that could potentially derail the integration of the businesses. This understanding was used to ensure adequate focus was placed on the people issues involved in the acquisition and not just the financial, legal and structural issues.

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