Culture Integration: The Secret to Successful M&A

Bring new blood into your organization without causing a culture clash

Yaroslav Danylchenko/Stocksy

Innovation and acquisitions are key topics in my conversations with senior business executives. For many large companies, acquisitions can accelerate growth and bypass cultural antibodies that prioritize stability over innovation.

Acquiring a new organization is like a blood transfusion for a corporation. This fresh blood not only increases oxygen and energy, but it can actually save an organization's life. However, just like blood transfusions, incompatibility can have fatal effects. Culture compatibility is essential.

According to PwC, cultural incompatibility is the primary reason most M&As fail. Instead of infusing new blood, it can lead to key talent quitting during the transition. 75% of C-suite executives agree that appreciating cultural differences is vital for a healthy integration.

Culture Compatibility: How to Prevent System Rejection

When a company undergoes an M&A, it doesn’t merely acquire assets or revenue streams. Rather, it absorbs an entire ec…