Mergers and acquisitions (M&A) are often seen through the lens of balance sheets, market share, and operational efficiencies. Yet, up to 70% of M&A deals fail to deliver their intended value – and culture is frequently the silent culprit. Why Culture Matters in Mergers
and Acquisitions:
Why culture makes or breaks a merger or acquisition
1️⃣ When two organisations come together, so do two distinct ways of working, communicating, and making decisions. If culture isn’t addressed
Teams may cling to “the old way,” resisting new processes. Misaligned values can erode trust and collaboration. Talented employees may disengage or leave.
Example: A merger between a fast-moving startup and a risk-averse corporate giant can spark tensions, unless leaders proactively build shared norms that honour both agility and governance.
2️⃣ Culture drives employee experience and retention. In M&A, employees often face uncertainty about their roles, reporting lines, or future prospects. A strong, people-first cultural integration plan provides clarity, reduces anxiety, and helps retain key talent critical to delivering deal value.
Signalling respect for both legacy cultures builds buy-in for the new organisation.
3️⃣ Culture determines how well strategy gets executed. You can design the smartest synergy plan. but if cultural friction stalls collaboration, those synergies stay on paper.
Shaping Future Culture
Successful integrations actively define and shape a future culture that supports the strategic goals of the combined entity. This means:
- Aligning leadership behaviours.
- Reinforcing shared purpose and values.
- Role-modelling collaboration across legacy boundaries.
How can leaders put culture at the heart of M&A success?
- Start early – assess cultural fit as part of due diligence.
- Involve employees in shaping the new culture.
- Communicate transparently and often — even when answers are still emerging.
- Identify and empower cultural ambassadors across legacy organisations.
- Measure and track cultural integration alongside financial KPIs.
️ Culture isn’t the soft side of M&A. It’s the hard edge where value is either unlocked — or lost.
#MergersAndAcquisitions #CultureChange #ChangeLeadership #OrganizationalChange #ChangeManagement
For an article detailing why culture matters in mergers and acquisitions: Culture is key to success
Mergers are enticing but tough to do. Creating a unified culture has a huge part to play in creating something bigger than the sum of its parts.
