Culture key to success of company mergers

The decision to drive strategic growth through a merger is alluring. Numbers often drive a hard argument. But as everyone who has experienced the reality of a transaction knows, the road to living up to financial expectations of a merger can be fraught with land mines. And one of the more overlooked derailing factors to consider is cultural integration.

According to collated research and a recent Harvard Business Review report, the failure rate for mergers and acquisitions sits between 70 and 90 per cent largely because of incompatible cultures post-mergers. Like most things in life, there is no secret recipe for successful mergers. A well-etched strategy, astute management team, and an eye for detail are what encapsulates the essence of the successful merger.