Tag archives: corporate culture

Outlook for 2019: cross-border M&A and post-merger integration

Despite a general environment of uncertainty, 2018 was quite active in the cross-border M&A arena. However, observers expect a global drop for this year, especially for the mega-deals (i.e. transactions with deal values exceeding $10 billion) amid uncertainty over Brexit and the threat of globe trade wars. Accordingly, acquirers are increasingly focusing on domestic deals rather … Continue reading

Creating value beyond the deal

In today’s M&A market, dealmakers are increasingly under pressure – resulting from increased disruption, industry convergence, technological change and the need to shift to new business models to stay competitive – to maximize and deliver value from each deal they do. One would think, therefore, that value creation would be a priority for dealmakers. However, … Continue reading

Strategies for parenting start-ups, post-acquisition

In recent years, we have seen more acquisitions of start-ups by big corporations in the tech industry, healthcare, retail, fashion, beauty, food, and transportation. The benefits of M&A transactions in these sectors has been more widely recognized. For instance, for a start-up, partnering with a large corporation provides broader market access, deeper industry knowledge and … Continue reading

Look to the future: a tip for analyzing corporate culture in an era of evolving shareholder activism

2018 promises to be a year in which corporate culture will likely become an even more important focal point for investors and activists. There’s no denying that social media has drastically altered the dynamic for public companies. Today, shareholders are increasingly calling upon corporations to take public stances on various social (and sometimes political) issues, … Continue reading

Cultural compatibility: predictor of a transaction’s potential success

We have previously reported on human capital considerations in M&A transactions; in this post we consider how corporate culture affects a deal’s possibility of success. While qualitative considerations often sit on the backburner in the lead up to a deal, compatibility of corporate cultures can be an important factor in determining whether a merger or … Continue reading

Human capital considerations in M&A transactions

In any M&A transaction, there are a variety of risks that are associated with human capital. Mercer has recently released a report, People Risks in M&A Transactions (the Report), based on a survey of M&A professionals. It provides an analysis of approximately 450 M&A transactions, and interviews corporate and private equity clients, investment bankers, and … Continue reading

The who, what, where, when and why of PMI

As discussed in a previous blog post, a successful post-merger integration (PMI) can allow an acquirer to realize the full value of the transaction. However, PMI is often an underestimated challenge. Recent publications released by Mergermarket and PwC consolidate the views of M&A experts and discuss best practices when engaging in the PMI. Below we discuss these … Continue reading

The Culture Problem

Recent discussions on M&A deal activity debate whether mergers and acquisitions fail to meet financial projections or return on shareholder value. Most often, failures are chalked up to ‘cultural clashes’, implying that the two merging entities ‘just don’t fit’. Given the abundance of resources that get allocated towards the execution of a merger or acquisition, … Continue reading
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