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Merger Guidance
1.1 If the merger is agreed to, isn't a culture fit easy to achieve?
The two organisations are forced to align their cultures.
1.2. Is the implementation of a merger not very simple? In the merger agreement,
the lines are already drawn. Thus, isn't implementation just carrying out those instructions?
1.3. Is it always necessary to have an external guide during the merger process?
1.4. Is there a way to introduce a phased approach to a merger process?
1.5. Why are failed mergers so common?
1.6. Is an integration manager
needed during a merger?
1.7. Why is the culture so important during mergers and acquisitions?
1.1. If the merger is agreed to, isn't a culture fit easy to achieve? The two organisations are forced to align their cultures.
The cultural environment adjustment in a merger will
go wrong if you have the “an order is an order”
approach. Already in an early stage the two parties
will experience each other’s culture; with a guided
approach, the best parts of the two cultures can and
should be integrated.
1.2. Is the implementation of
a merger not very simple? In the merger agreement, the
lines are already drawn. Thus, isn’t implementation
just carrying out those instructions?
The implementation is even harder than the earlier phases
in the merger process. In the implementation, resistance
comes to the fore. There arises often a power struggle
around employees’ positions. During the implementation,
unexpected setbacks always occur. Therefore it is imperative
to work with an implementation plan and devote sufficient
time to make it happen.
1.3. Is it always necessary
to have an external guide during the merger process?
No, but it is usually better to have an independent
process guide to support the merger process. The two
organisations must use their own resources in the form
of an integration manager and integration teams. A process
guide can channel any possible power struggles that
arise.
1.4. Is there a way to introduce
a phased approach to a merger process?
Yes, after the orientation meetings, the setting up
of a merger proposal and the negotiations, the actual
merger (the integration) can begin. The first 100 days
of the integration are very important. In this period,
it must be clear how the management and the decision-making
structure will appear, who will work where, how the
cultural integration will be approached, and how the
clients will be handled.
1.5. Why are failed mergers
so common?
The advantage of the merger is often exaggerated, the
preparation is not careful enough, there is no or too
little attention paid to the cultural differences between
the organisations, there is too little commitment by
the lower management levels of the two organisations,
there is too little attention paid to the implementation
of the merger, and there is a lack of communication
between top and bottom.
1.6. Is an integration manager
needed during a merger?
It doesn’t matter what the person is called, but
it is very important that an experienced employee is
charged with the integration process. With this person
in place, a roadmap can be made, which outlines the
necessary steps to be taken in a logical coherent manner.
The integration manager must have the freedom to go
back and forth between the board and the different departments
within the companies. The integration manager will have
a good sense of the cultural differences between the
two organisations.
1.7. Why is the culture so important
during mergers and acquisitions?
Culture provides meaning and purpose to the organisation.
The underlying values and rituals determine how the
employees deal with each other. Each organisation has
its own history and that is coupled with a specific
way of working. These cultural practices are inherent
in both organisations. Without extra attention paid
to them, it will lead to opposition, questioning of
competence and power games, and the new organisation
will only lose productivity as a result.
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Ehrhardt Leus & Associates advised
companies such as: LogicaCMG N.V.
Philips N.V.
Econocom S.A.
TDS A.G.
Global Collect B.V.
Speedlinq B.V.
CARe Schadeservice B.V.
CARe Carrosserie N.V.
Anachron BV
Philips TASS BV
Albumprinter BV
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