1.
M&A
Culture Issues

2.
2 + 2 = 5 effect

3.
To Boost Our Company's
current Performance
M&A 2
Reasons
To Reinvent our Business
Model

4.
Study By Hewett Association
162
Organization
At least 1 M&A
M&A failure 70% - 90%
69% says Culture as
Main Challenge during
M&A

5.
Lack of courage
No common vision Ignorance
Team resourcing
Poor communication
Lost baby with bathwater Poor governance
Poor programme management
Weak leadership
Ignorance Poor governance
No common vision
Lack of courage Weak leadership
Nasty surprises resulting from poor due diligence
Team resourcing
Poor programme management Lost baby with bathwater

6.
Impact of Culture
on
Mergers & Acquisitions

7.
7 Pitfalls
Preoccupation
List-making
Organizational Proliferation
Infrequent and irrelevant communication
Triangulation
The relatives
The guiding light

8.
Preoccupation
Canada individual preoccupation "How is this all going to impact me?"
France and Italy turn to unions Go on strike
Example
French railroad
Demise of
strike December 1995
the Juppé government
subway workers
Strategy
Acceleration

9.
List-making
Example
require
Mexicans structure and definition than do Canadians
role and responsibilities
Strategy
Concentration

10.
Organizational Proliferation
Canadian managers expect input from these teams and
committees
Example
French members of these committees and teams
expect direction from their managers.
Accelerate,
Strategy Concentrate &
Adapt

11.
Infrequent and irrelevant communication
The working languages of the two organizations involved are not the same.
Case of a Norwegian - American joint venture
Accelerate,
Strategy Concentrate &
Adapt
PricewaterhouseCoopers survey of 124 mergers

12.
Triangulation
Clear lines of authority
Web of conflict
Clear understanding
Two Quickly overwhelmed
Filipino employee
Managers Perform two separate jobs
Concentrate and
Strategy Adapt

13.
The relatives
The relative forces of time and space
Japan 30 years
long-term
North America 3 years
Different time zones, regions, countries and organizational
units.
Strategy
adapt
adapt

14.
The guiding light
Primary roles Leader Vision and inspire others
Example- Charisma and a positive personal image are important
attributes of leadership in the U.S., more so than in Canada.
Strategy
adapt

15.
Overcoming The Culture Impact
Pre Combination
Combination -Canadian-
-Swiss-
Long Term (integrating the Short Term
Oriented companies) Oriented
Solidification and
Assessment of the
new entry

16.
Tata Motors-Jaguar Land
Rover $2.3 billion

17.
Queries

18.
Source: Bloomberg & ET