Acquisitions Part 4: Maintaining separate corporate cultures
Conclusion: The blending of different corporate cultures can be a huge risk factor that can significantly impact the success or failure of an acquisition. Maintaining multiple corporate cultures is extremely difficult to do, and the chances of failure are high. Cultures usually have upsides and downsides. When trying to keep cultures separate, employees tend to only see the “upsides” of what their peers have, and downside issues undermine employee morale due to feelings that they are not being treated fairly or equally.
It is IBRS’s view that ultimately efforts to have two conflicting corporate cultures coexist after an acquisition are likely to fail over time. The most dominant culture will ultimately be the culture of the organisation and employees who did not sign up for that culture will look for exit opportunities.
About The Advisor
Peter Hall was an IBRS advisor between 2016 and 2020 who covered enterprise infrastructure, management, managing vendor and customer relationships, vendor capabilities and vendor offerings. Peter is also experienced in Start-Up’s and Mergers and Acquisitions. Peter has over 37 years of experience working in the IT sector in ANZ and Asia Pacific, gaining invaluable insights into vendor offerings and strategies, relationship management, and channel strategies. Peter’s an experienced executive having worked for Hewlett-Packard, Blade Network Technologies (acquired by IBM in 2010), IBM and Lenovo. Peter is also an accredited Tony Buzan Licensed Instructor in Mind Mapping.