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Managing the people side of mergers & acquisitions

What happens when an entrepreneurial company is acquired by a mature one?  There will be some key differences between the combined groups of employees, so companies want to minimize the conflict for the easiest possible transition.

Analytics from the Predictive Index® help combined cultures and teams to understand each other–seeing their differences as well as commonalities to connect on.  This in turn helps with communications between and among teams.  Individually the analytics give managers the ability to understand members of the team, and analytics provide information on the employees to leverage.  Predictive Index provides the data necessary to create the most effective transition possible due to a merger or acquisition.

In 1998, German manufacturer Daimler-Benz merged with U.S. automaker Chrysler Corp. for $38 billion. Industry analysts hailed the move, saying it would combine Daimler-Benz’s legendary quality with Chrysler’s low-cost manufacturing expertise. But less than a decade later, Daimler-Benz unloaded Chrysler for just $7 billion.

What went wrong? Everything. In a classic example of corporate culture clash, two companies from different countries with different languages and different management styles simply could not mesh. Germans blamed the Americans for quality problems. Americans accused the Germans of arrogance. Instead of creating a trans-Atlantic industrial powerhouse, Daimler-Chrysler became the latest in a series of well-publicized merger failures.

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Combining two organizations can create a new, stronger, more efficient entity. But the process is complicated. It involves assessing each organization’s financial and operational strengths, customer base, market presence, product or service expertise, organizational culture and a myriad of other factors. An objective, pre-merger analysis by an outside party can help determine the best path to success. After the merger or acquisition is completed, outside assistance can be of tremendous value to the management team in identifying potential problems and developing strategies to solve them.
In today’s competitive marketplace, mergers and acquisitions are among the fastest ways to increase market share and stakeholder value. For some organizations, their very survival is at stake.

The M & A experts at The Oliver Group can help guide you through the complex process from pre-deal planning and deal completion through post-deal integration. In addition to providing the necessary leadership and sales due diligence, we can help you successfully combine two or more cultures and staffs by answering such questions as:

What are the similarities and differences?
What will the new structure look like and who will fill the boxes?
How will leaders make the correct decisions in those arenas?
How is the new culture defined and how is it communicated?
What is the benchmark for new roles, if any?
What are the strengths of the current staff members?

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