the ceo magazine, mergers and acquisitions,
Colin Earl, CEO, Agiloft

Mergers and acquisitions are for risk-takers, particularly when you consider that 83% of them fail to boost shareholder returns.[1] Despite these odds, M&A continues to appeal to companies of all stripes as offering the most direct path to achieving long-term strategy. The enduring siren song of M&A has generated troves of studies to identify why the failure rate is so high. The common culprits are differences in corporate culture and business systems. Collectively, these determine how a company does business.

the ceo magazine, culture,
Kathy Bloomgarden, CEO, Ruder Finn

As companies seek a new strategic vision in a digital age, mergers are on the rise. Many of the mergers on the table are driven by the urgency to transform business strategy and gain scale. This is leading to the combination of companies with widely varying cultures. In this context, it’s no longer enough for company leaders to focus solely on the combination of finances and operations; they need to know how to best combine two (often very different) cultures, all while maintaining a strong company internal spirit in the wake of major changes. In fact, cultural integration was the second most common direct factor cited for deal failure by companies in Aon Hewitt’s Global Survey and has increasingly become recognized as a top issue in deal-making.

the ceo magazine, sales team,
Michelle Seger, Global Sales Strategy & Change Management Leader, SalesGlobe

It can start with a whisper: We’re merging… our sales comp is down the drain.

When dramatic change occurs within a company, like a merger or acquisition, a vacuum of communication from leadership will be filled with rumor. One of the most common: an acquisition depletes an organization’s resources so much that staff cuts will be necessary. In reality, human capital is essential to organizational success, and a significant asset in a merger or company purchase. So, when should employees start hearing about organizational change?

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