HomeHome
ProfielProfile
TeamTeam
Waarom Ehrhardt en EhrhardtWhy EL?
TransactionsTransactions
MarktontwikkelingMarket Development
FAQFAQ
ContactContact
LinksLinks
tel: +31 20 4198862
  +31 20 4198863
 
fax: +31 20 4198861


For more info:

info@ehrhardtleus.com
 
 
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.

 
     
     
   
   
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

Home | Profile | Services | Team | Why Ehrhardt, Leus & Assoc. | Market Development | FAQ | Contact | Links | Terms of Use
�2006 - Ehrhardt, Leus & Associates B.V.