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The number of deals that take place around the world every year is growing rapidly. At the same time, they are becoming significantly more complex, involving multiple markets and industries. However, studies show that 80% of mergers and acquisitions globally fail to create value. In more than 30% of these, cultural misalignment is one of the key reasons cited for failure.
Data-based culture due diligence: a new practice
Cultural incompatibility is the single greatest reason that deals fail to create value.
However, the due diligence phase of M&A transactions still focuses primarily on financial and legal aspects of the deal and excludes an examination of culture and potential cultural misalignments that could undermine the vision and financial objectives of the dealmakers. Too often, culture is treated simply as a buzzword and remains unaddressed until after a deal is closed.
The difference between a successful merger and acquisition (M&A) deal and a troubled one often hinges on whether culture is assessed in the due diligence phase of a transaction. Successful transactions require a holistic view of culture at an early stage, and a strong focus on people-related issues.
Yet ‘cultural due diligence’ is virtually unknown because investors lack a clear way to measure culture.
Data-driven culture intelligence to sharpen merger & acquisition strategies
To address this need, Culturelytics has created the world’s first AI-driven analytics platform designed to help acquirers conduct data-based culture due diligence.
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Equipped with this data-driven culture intelligence, buyers can sharpen their deal strategies by adjusting valuation to account for cultural issues or planning effective interventions to improve cultural alignment.
We use a four-step process to provide our clients with smarter, clearer, more relevant data on culture than has previously been possible.
We measure what matters, based an in-depth understanding of your business mandate.
Informed by the latest behavioural science, we collect smarter data.
We use the power of AI to analyse the data, turning the complexity of culture into clear insights.
You get data-driven culture insights that are clear, detailed and actionable.
Data-driven culture insights. Smart interface for leaders.
HR Katha is an India'a leading online HR platform to know about HR News & Updates, HR Trends, HR Practices and platform to connect HR professionals.Read more..
Globally, mergers and acquisitions worth a total of more than $4 trillion take place every year. Studies show that more than 85% of these deals fail to create value, and in more than 30% of these, cultural misalignment is one of the key reasons cited.Read more..
Acquirers will be undertaking significant additional due diligence to assess the effects of the crisis on the seller’s business. Read more..
The Mergers & Acquisitions market, valued at $4.7 trillion worldwide accounts for $1.7 trillion in losses because one-third of the deals fail at culture integration.Read more..
Culturelytics founder, Yeshasvini Ramaswamy featured in the annual forum of the London-based Institute of Leadership & Management.Read more..
Culturelytics founder, Yeshasvini Ramaswamy, played an active role in the Apex’19 Summit & Awards. The annual event is attended by the leaders of India’s premiere private equity and venture capital firms.
Ms. Ramaswamy took part in the kick-off event, at which a senior panel discussed a range of topics, including emerging trends in venture capital investments and exits, the sectors investors are currently looking to back, key legal and regulatory pitfalls, and more.
Chairman of Manipal Global Education
It is culture that determines how an organisation will function. No matter how many financial exercises you engage in, during an M&A, ultimately if the people are not aligned, the new combined entity would not be able to function smoothly.
Senior Managing Director at Blackstone.
The right organizational culture and team morale are essential for any company's success. Quite often these softer issues are overlooked especially in merger situations leading to failed outcomes.
Executive Director, TVS Logistics
Culture Compatibility is core of all M&A and needs to be monitored from time to time. At the end of the day all M&A’s are initiated with the primary motive of keeping the CUSTMOERS happy and engaged. No customers, no business. I strongly believe that the solution of a culture integration process should be reflective of the values that the customer chooses for us.
Founder -Venture Intelligence
It is culture that determines how an organisation will function. No matter how many financial exercises you engage in, during an M&A, ultimately if the people are not aligned, the new combined entity would not be able to function smoothly.
CEO -Currencycloud
Culture only matters when it does, and then it really matters.
Founder and Managing Director Candle Partners
Culture is also an important aspect of M&A integration ; however in most cases it tends to be ignored. Language, regional nuances are critical aspects and is always sub-consciously part of the evaluation of a buyer ; however the granular detailing that is required is missing in most buy side evaluations. .
Chairman & CEO KPMG India
An organization’s culture cannot be taken for granted. It needs to be addressed on a continuous basis to constantly strengthen alignment for success. Such attention becomes especially critical at inflection points when an organization pursues inorganic growth such as a launch into a new business or a merger/ acquisition.
Co-founder & Director Greenfern Leadership & Strategic Consulting (P) Ltd.
Organizational networks, and hence organizational cultural mores and processes, influence virtually everything organizations do, driving behaviours and resultant outcomes. So, mismatches in cultures of two merged entities are bound to have far-reaching consequences. We cannot afford to overlook this, or the fact that the final participants in mergers are human, driven both by individual needs as well as a shared cultural ethos.
Partner Siana Capital
An organization’s culture cannot be taken for granted. It needs to be addressed on a continuous basis to constantly strengthen alignment for success. Such attention becomes especially critical at inflection points when an organization pursues inorganic growth such as a launch into a new business or a merger/ acquisition.
Recognized as a leading woman entrepreneur in India, Yeshasvini combines deep expertise in human resources, analytics and investment management to bring analytical and financial rigour to cultural transformation projects.
Based in London, Smita has more than 30 years experience in organizational and people development for both corporates and large-scale government organizations. She is a thought-leader on unconscious bias, helping organizations create more inspired and productive workforces.
Combining a sharp entrepreneurial mindset with a decade of experience in finance and law, Deepak leads our business transformation and HR strategy projects. He serves as a Partner in our sister concern e2e People Practices, a boutique consulting firm.
Rimel is an experienced marketing professional with a passion for building successful client relationships. He has worked with and across sales teams, building long-term relationships with a wide range of corporate clients in India and internationally. He has particular expertise in the financial services sector, having worked for Marsh Insurance Brokers and JP Morgan Chase Banks.
A strategic business communications consultant based in London, with 30 years experience creating targeted communications for corporates and other organizations, including The Coca-Cola Company, the Red Cross/Red Crescent and the United Nations, in markets around the world.
Varun has 15 years hands-on experience in artificial intelligence and predictive modelling, mergers and acquisitions, private equity investing, strategic planning, and organizational restructuring. Equipped with an MBA from Harvard Business School, he is also a Chartered Accountant.