Preserving identity, creating new synergies

We have been involved in M&A Cultural Integration since the late 1990's. Research suggests that cultural integration is the critical success factor for merger success. (mercer 2009, the impact of culture on M&A). Whilst most organisations manage the tangible assets in an M&A, such as strategies, products, markets, customers etc, they fail to manage the intangible assets. Namely, they fail to examine the level to which the cultures of the two organisations are aligned.

To put it in more general terms, most M&A activity fails to recognize, comprehend and plan for differences in philosophy that drive different cultures. With that in mind, would you marry someone before you knew what they were really like?



We provide pre and post merger services to ensure that there is cultural alignment, that all key staff remain engaged, involved and on board, and that the areas of tension between the two organisations are identified and addressed.

Our report identifies alignments, misalignments and potential culture clashes that could derail your merger and acquisition, and then provides a step-by-step structured methodology designed to preserve the core identity of each organisation.

The Knowhow Group Cultural Integration Services

A. Cultural Due Diligence - determine pre-merger or post merger level of cultural alignment and misalignment across key cultural traits and values, attitudes and behaviours.

The Cultural Integration Due Diligence Process Model...

The process is conducted through both "one on one" interviews across a diagonal slice of both organisations (level, position, function, sex), and quantitative surveys

It covers a full cultural audit that compares and contrasts the two entities for a complete picture. The process identifies:

• Areas that are same
• Areas of similarity
• Areas of difference
• Areas that represent points of tension that could be fatal

Our Due Diligence processes measure these across nine cultural "intangible" dimensions:

• Identity
• Values
• Leadership
• Management
• Trust
• Conflict strategies
• Processes
• Rewards
• Skills

Post decision point, we work with the steering group to effectively manage the integration with regard to: