Ensure Cultural Fit in your M&A activities

More than 40% of M&A failures are due to cultural mismatch. This should give pause for thought, as acquisitions always require significant financial investments that are to be protected.

It is possible to mitigate these risks through a structured Culture Due Diligence that unveils potential Culture Conflicts, as well as the most appropriate path to merge both cultures to a unique, effective Corporate Culture allowing to deploy the synergies and other positive effects of the acquisition.

Why is it important?

In M&A, Culture is one of the most important factors for success - and, at the same time, also the most-often ignored topic. As a result, it is very frequent that the post M&A phase brings massive attrition, operational problems, communication issues and failure of financial targets that will lead to goodwill impairment.

Taking culture into consideration from Due Diligence to the end of the integration phase mitigates this risk and massively increases the chances that all objectives of the acquisition are reached.

What is our value add?

AGILIS's Culture Change Framework includes tools that allow to position the maturity and nature of Corporate Cultures during the Due Diligence phase - obviously with all the discretion needed at that stage of the process. Culture gaps and potential clashes are recognized and are the base for the Cultural Alignment program that is prepared in such a way that it can start at the day of the public announcement of the merger.

What is the impact for you?

Considering culture as a crucial element in M&A and using a solid methodology to assess cultural compatibility significantly increases the chances of success of an acquisition. There may also be situations where the culture gap is unsurmountable, and the acquisition or merger may not be a good plan. This knowledge at an early stage, as well as Culture Alignment initiatives, make sure that the M&A activities of your company achieve the expected results.

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