Our servicesmergers & acquisitions
Leaders face significant pressure to ensure deal performance, which requires a smooth transition post-deal. We provide cultural and team assessment and gap analysis due diligence to reduce risk and provide the ciritically needed cultural and team integration post-merge.
87% of execs believe that failure of cultural inegration is the #1 reason for post-deal underperformance, but only 4% include it into their due diligence checklists.
– Prtichett and Bain & Company
Why Cultural Integration Ranks #1
- Lack of accountability
- Team misalignment
- Missed deadlines
- Failed culture adoption during the acquisition
- Undesirable turnover and attrition
- Loss of key personnel
- Low engagement
- Poor morale
- Failure to adapt to process changes
Which results in
- Reduction in Productivity
- Breakdown of High-Performing Teams
- Infighting & Drama, Road Blocking
- Intentional Disruption
- Leadership Distracted by Internal Dysfuction
- Prolonged Transitions
- Increased Cost
- Reduced Profitability
To achieve one, cohesive team, key factors need to be managed skillfully.
A SUCCESSFUL M&A DEPENDS ON YOUR PEOPLE
Successfully merging two cultures takes strategy, skill, and experience. Rose Group Int’l maintains that company culture is designed—either by accident or with intention. And whether you allow the new company culture to be a product of happenstance or a carefully mediated plan of action, once it is established, it is difficult to change.
Leadership styles need to complement each other
To ensure that the two teams become one, leadership styles on both sides of the aisle have to coexist. There must be an atmosphere of trust and respect between senior players. During an M&A, relationships are built and redefined, protocols are instated, and new roles and responsibilities of leadership arise.
It’s important that during this critical time, leadership creates an environment of mutual respect and understanding.
Key personnel must feel confident and secure during the transition.
It’s tempting to brush off the feelings of your employees—this is business, after all. But during an M&A, your best people have doubt and uncertainty about their future in the company. Even if they have confidence they will have a position after the merger, they aren’t sure how their work or day-to-day experience will change. It’s a stressful time, and all that stress can lead to a resignation.
Losing your key staff is expensive. Society for Human Resource Management (SHRM) predicts that every time a business replaces a salaried employee, it costs six to nine months’ salary on average. For a manager making $60,000 a year, that’s $30,000 to $45,000 in recruiting and training expenses. By ensuring your key team members remain loyal during the transition, your company avoids unforeseen expenses.
Two distinct company cultures have to restructure under a new vision
Each company involved in the M&A has its own, distinct company culture. It has its set of rules, expectations, and routines. And if those two company experiences don’t align, the M&A will likely face a mass exodus of staff. If not a large-scale departure, then tension and discontentment that can lead to fragmentation within the organization.
For the M&A to be successful, the two teams need to buy into a new, universal vision of the company. Without careful guidance, many companies are left with an “us vs. them” problem that can remain long after dissatisfied employees leave the company.
M&A with Rose Group Int’l
We reduce risk by providing a Culture Gap Analysis during due diligence, as well as cultural and team integration post-deal..
WHAT WE DO
At Rose Group Int’l, we construct lasting, tenable solutions to the many challenges that arise during an M&A to create a strong company culture. We empower teams at every level to
- Overcome resistance to new leadership
- Blend two opposing work cultures
- Create an atmosphere conducive to a smooth transition
- Use tools that immediately improve accountability and productivity
- Hit target initiatives and deadlines
- Maintain key personnel
We’ve seen many deals fail to perform as needed (studies show upwards of 70% of transitions fail to be fully implemented as planned), which led us to realize something was missing from the equation. During an M&A, problems don’t arise because leaders are lazy or aloof or because the team is intentionally sabotaging the effort.
The real issue hinges around uncertainty about how the change will impact the team and the individuals that comprise it. When it comes down to it, a successful M&A is really about understanding your people and they respond to change.
And we are experts in team transitions.
WHAT WE OFFER
We provide a Culture Type gap analysis during due diligence, which reduces risk by more accurately developing transition schedules, strategically and proactively addressing potential cultural clashes, and reducing the chances of unexpected cultural issues.
Post-deal, we provide leaders with tools to address culture and team dynamics to improve integration, unify the organization, and create a high-five culture. Rapid cultural integration improves productivity, reduces internal negative drama, and improves profitability.