41-slide PowerPoint Presentation
How to Perform Culture M&A Due Diligence
- Understand the Deal Logic
- Get Organized
- Gather Data
- Analyze the Data
- Operationalizing the Data
Critical Mistakes in Culture Integration
- Extremely under-funded
- Attacking on too broad a front
- Mismanagement of expectations
- No coherent methodology
- Delegated to the wrong people
- Allowing the existing culture(s) to call the shots on culture change
- Confusing culture issues with the generic problems of change
- Lack of focus on operating results
- Failure to train the workforce
- A reward system that reinforces the status quo
- Misconstruing the signs of progress
- Lack of backbone and commitment
The Process of Culture Due Diligence
- STAGE 1: Understand the Deal Logic
- STAGE 2: Get Organized
- STAGE 3: Gather Data
- STAGE 4: Analyze & Synthesize Data
- STAGE 5: Operationalize the Results
STAGE 1: Understand the Deal Logic
- The Business Case
- Value drivers
- Integration intent
- Perceived risk factors
The Business Case
- Competitive market advantage
- Synergy targets
- Geographic expansion / international
- Vertical integration
- Product/service diversification and cross-selling
- Financial targets
- Timeline ...