What are the Best Practices to Follow in Order to Establish and Spread Culture for a Newly Formed Company Post-Merger?
Clement, TJ; Varón, Lydia
[Excerpt] Merger and acquisition (M&A) activity has seen a significant increase in the past several decades and 68% of executives at US-headquartered corporations believe this pattern will continue. Although human capital can be the largest expense to impact a company’s income statement, it should be looked at with the lens of being an asset to the company and one worth strategically investing in. Knowing this, it is extremely important for a company to be prepared for any large changes to or impacts on their workforce, particularly during a M&A. In addition, a company must address the question of whether or not to integrate cultures post-merger. The answer is determined by the reason for the M&A; are the companies looking to achieve economies of scale or of scope? In other words, it must be clear what the objective of the merger is for both companies: growing the current customer base or gaining a new one.
human resources; merger; acquisition; culture; company brand; post-merger; M&A; economy of scale; economy of scope; 360-degree communication program; stakeholders; organizational structure; trust; employee trust; integration of culture; acquisition culture; intellectual capital; customer relations; retention; employee surveys
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