Professional Services Advisory UK & Global 2024

M&A Advisory

Professional Services Firm

Industry: Professional Services
Location: UK & Global
Year: 2024

Full Credential Description

The case study focuses on the socio-cultural influences on post-merger integration (PMI) performance, as explored in the thesis by Mr. Benedikt Biedermann at Vrije Universiteit, Amsterdam. The primary issue identified is that mergers and acquisitions (M&As) often fail not solely due to financial mismatches but also due to neglected socio-cultural factors. Biedermann's research highlights that a shared organizational identity is crucial for fostering cooperation among employees from merged entities. This insight is particularly relevant for PMI practitioners, who are encouraged to implement activities that promote social cohesion and dismantle prejudices to enhance integration success. Biedermann developed a three-pillar holistic socio-cultural influence model, which includes the human factor (negative emotions), the social component (organizational identification), and the cultural aspect (organizational cultural differences). His findings indicate that while negative emotions do not significantly predict PMI performance, organizational identification positively correlates with it. Furthermore, he discovered that organizational cultural differences negatively impact PMI performance

Measurable Results

Professional advisory services and strategic guidance delivered