Why Cultural Exchange Is Key to Successful Mergers


Developing new ways to work effectively is often challenging after mergers and acquisitions. One of the most important causes of convolution is the difficulty in harmonizing two distinct corporate cultures. The periods right before and after mergers and acquisitions are naturally chaotic. Team members come from two different environments and don’t know each other; managers from one culture need to manage people who are used to working differently, and conflicts are inevitable.

While avoiding all pitfalls arising from such differences in corporate cultures is not possible, there are many ways to mitigate them and create a motivating environment for all. The key to solving the problem is in cultural exchange. The companies that participate in the merger or acquisition need to avoid forcing their values on the other company’s teams. Instead, they need to cooperate in developing new values in the new organization. An esteemed M&A broker substantiates that the best way to achieve all that is through ongoing communication to learn about each other’s values, maintaining an open attitude, and reducing uncertainty through transparency. The process takes time, lots of effort at all levels, and a strategic, helpful, and understanding attitude from everyone involved.

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