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INTEGRATION AFTER CROSS-BORDER ACQUISITION, ALLIANCE OR MERGER

As cross-border mergers, acquisitions, joint ventures, collaboration or other strategic alliances become a common way of creating international growth and expansion, it is important for companies to be able to achieve success in the post-merger integration phase. Increasingly it is clear that cultural differences play a very significant role in this.

Success Rates

"Post-merger integration become harder to pull off. One set of obstacles is 'hard' things, such as linking computer systems. More difficult are the 'soft' issues; and here the same word keeps popping up - culture. People never fit together as easily as flow charts." (The Economist, 1999)

The Business Week wrote: "75% of Mergers and Acquisitions are outright failures." In The Complete guide to M&A (Galpin 2000) it is said that "typically 47% of all Senior Executives leave within the first year, and 72% within 3 years". And according to Coopers and Lybrand "85% of failed/troubled mergers are due to differences in management style and practices," again clearly pointing to culture as the a word. Culture refers to the values, beliefs, symbols, style and practices from national, ethnic, organisational, professional or functional groupings.

Transcultural Synergy assist businesses involved in cross-border acquisitions, joint ventures or strategic alliances with their post merger integration challenges that arise from the differing organisational and national cultures. Our aim is to maximise human potential in transnational collaboration. For more information please view our Integration website.

Domestic vs International Mergers

It is increasingly understood that what ultimately makes mergers or alliances work are the people, and, collectively, the cultures of the companies merging or co-operating. As a result many consultancies, often from an organisational development background, concentrate on managing and aligning the different corporate cultures by creating a new common vision. History shows that this is difficult enough, but when different mindsets from different national cultures and languages exist on top of the differing corporate cultures, then the task becomes daunting.

We concentrate on cross-border (international) post-merger integration assignments only. International mergers and alliances are doubly complex, because the differences in national culture (management style, decision-making, expression etc.) and language make it difficult to even have a common framework within which to operate and work out the corporate culture differences. Many corporate culture models which work well for domestic alliances are inappropriate or insufficient in an international framework.

International mergers and alliances are fundamentally different from domestic ones, and have to be looked in a slightly different manner. They require the fundamental knowledge of cross-cultural communication and business anthropology. This is our area of expertise. With the globalisation of the economy the likelihood of cross-border mergers and alliances increasing is high. This will create an increased demand on the ability to manage cross-border merger integration well.

WE HELP YOUR CROSS-BORDER ORGANISATIONS MERGE AND INTEGRATE SMOOTHLY AND INNOVATIVELY

Cross-border Post-Merger Integration Presentation

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Transcultural Synergy Ltd
Tel: +44 (0) 870 383 4655