Why Mindset Is Important in Mergers and Acquisitions

21jun21b

Mergers and acquisitions are complex transactions that involve more than just the intention to achieve more profit with the new setup – it also involves human processes that are not directly measurable, but just as important.  iKadre M&A experts – https://ikadre.com/ –  say that the psychological dynamics associated with the merger or with the acquisition process can make or break the deal and have a considerable impact on the future of the new business structure – here is how the mindset makes an impact:

  • The importance of communicating the deal thesis – insecurity fueled by rumor is extremely harmful to any company, causing dramatic drops in productivity and in motivation. To avoid that, the reasons behind the deal must be communicated clearly to the teams in both companies and a broad outline regarding the future must also be provided to calm the waters;
  • The importance of harmonizing corporate cultures – an essential part of the deal process should be the analysis of the corporate values in both companies, followed by a process of harmonization and integration to create a new environment in which everyone can thrive. It is very important to have clear rules in place from minute one – people will accept the new conditions more easily if they know exactly what those new conditions really are.

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