“The secret of successful merger strategy lies in gaining an accurate picture of the target company’s cultural, human and structural assets,” said David Derain. “Our research shows that companies failing to take these factors into account when planning and implementing a merger will fail to deliver against their objectives.”
Due diligence tends to focus on finance, IT systems, tangible assets, markets and products. Culture – how the humans in the company see themselves, and how they behave – is mostly overlooked.
But as we know “culture eats strategy for lunch” so ignoring this critical issue during due diligence is risky at best.