Mergers and acquisitions are at an all-time high. In the last five years, the total financial value of mergers has increased by 250 percent and there are no signs that things will slow down in the coming year. While this is good news for dealmakers, it puts HR teams in a precarious situation. As an HR leader, you are more likely to deal with an acquisition than ever before. Additionally, you’re also up against the fact that 20 percent of dealmakers cite cultural alignment as the root cause of failed mergers. This means that even though mergers and acquisitions (M&As) are decided largely on financial projections, your department carries a disproportionate amount of responsibility for its ultimate success or failure.
The good news is that a collective 34 percent of dealmakers now consider effective integration and sound due diligence as the most important factors in achieving a successful M&A. But even though study after study shows that success in mergers and acquisitions hinges on people, culture too often gets lost in the shuffle. As an HR leader, what can you do to make a case for an effective cultural audit and steer your company towards success?
In this blog, we’ll break down why culture has historically been an afterthought in M&As, why that can no longer be the case, and how online screening can help ensure cultural fit with the speed and specificity executives rely on at each stage of a merger or acquisition.