Culture Tag

I wrote a blog last week of an imagined merger of Kalashnikov and Colt and the cultural dangers inherent in merging two proud and distinct entities.  Such difficulties can, and often do, erode or even destroy the proposed vision for the new company and the...

[caption id="attachment_245" align="alignleft" width="150"]Indian M&A Mumbai[/caption] The headline news [here] that India’s M&A activity in 2012 hit $36.3 billion, although large in overall size, camouflages the large fall in capital inflows into the country compared to a year ago, which was almost five times that amount. Outbound deals also continue to be relatively small.

[caption id="attachment_215" align="alignleft" width="150"]Culture; M&A; Integration To see or not to see...[/caption] I saw this case study about cultural fit in an M&A by Mary Teresa Bitti – the company in question is Vancouver-based The Little Box Company. It’s great to read a case study where cultural considerations are a key part of an acquisition strategy. All too often it’s in the bloody aftermath of why it didn’t work, or return the value expected, that ‘cultural incompatibility’ is cited as a main factor.

China M&AAccording to figures compiled by consulting firm DC Advisory, China has now overtaken the UK, Canada and Germany to rival Japan and the US as the nation with the world’s most acquisitive companies. Significantly, the report suggests that alongside the well-known tale of breakneck growth and increasing consumerism, “China is attempting a huge shift from an order-taker to an innovator, producing leading technology and infrastructure for both domestic and global markets.”1 What does this mean for ‘Western’ entities intending to join forces with a new Chinese parent company?

HP Autonomy commentYet again we see a story about a merger that has foundered post-close when all the advisers have banked their fees and left the scene. It’s a depressing story about due diligence that we see again and again.