Statistics reveal that 80% of all M&A’s are financial failures and that within two year 90% of the target company’s staff will leave.
Boards take advice from Merchant Banks, Accountants, Lawyers and I.T. advisors concerning the technical and legal aspects of the merger but fail to engage an independent HR Consultancy for advice and to manage the people part of the M&A process.
There is overwhelming evidence that the more the HR involvement in the merger the greater the chance of a successful merger and conversely the lesser involvement the greater the chance of failure.
Our own research and experience reveals that while the pre-merger involvement of HR is important it is The Post Merger Cultural Integration activities that determines the success of failure of the exercise.
We managed the Australian cultural integration of a multinational Industrial Services Company. The new entity had a turnover in excess of $600m, with 800 employees, and 65,000 customers, offices in every capital city and major regional centres, a parent company in USA and growing interests in New Zealand and China.
The Australian integration took 100 days to complete and was achieved without the loss of any key personnel.
On an international comparison basis this was by far the best result and the MMHR Post Merger Cultural Integration Model was adopted by the American and European Integration Managers.
Call to inquire about our 100 day Cultural Integration Plan