Updated: Sep 25
The Mergers and Acquisition Synergies Framework we developed includes measures from research on national culture by Geert Hofstede, Erin Meyer, and Sidney Gray. We used their data to show how cultural factors in cross-border mergers and acquisition can lead to success or failure. Our research is limited to national culture factors, yet as seen in a few instances above, corporate culture can be different from national culture. These differences can cause culture clashes of their own. Further research needs to be performed to explain the differences between national and corporate culture.
Even in the best of circumstances, M&A can be fraught with difficulties. Adding in the complexity of making deals across borders necessitates a greater level of diligence in every phase of the process. Whether the merger failed due to fraudulent accounting or incompetent management by HP,1 the HP Autonomy debacle shows how differences or even similarities in national culture can precipitate difficulties in the post-merger integration process. HP’s failure to properly integrate Autonomy exhibits how value can be destroyed when firms aren’t able to resolve cultural differences. Thus, we recommend that firms engaging in cross-border deal making include researching national culture’s potential impact on post-merger integration a part of the due diligence process.
Case Study of a Failed M&A—Concluding Thoughts on Microsoft's Acquisition of Nokia Had Microsoft recognized the differences in the synergies between the company, the acquisition of Nokia would have resulted in a…
Case Study of a Failed M&A—Introduction to HP’s Acquisition of Autonomy Applying the Mergers and Acquisitions Synergies Framework to the HP-Autonomy shows the cultural missteps that resulted in a failed merger.
M&A Synergies Framework—Concluding Comments and the Mapping Mergers & Acquisitions Polar… Many cultural differences are manageable but require an awareness and attention in addressing the problems that could lead to failed…
#Integration #Autonomy #Environment #Valuation #Software #Communication #Behavior #Acquisition #Merger #Nationalculture #HewlettPackard #Failure #Culture #Management #Fraud #Crossborder #SynergiesFramework #Accounting #Finance #Casestudy