Culture Due Diligence
Due Diligence before a M&A Transaction typically involves mostly commercial aspects, like strategic fit, financial matters as well as an analysis of capabilities of the organization in regards to employees/management, technology and distribution. They are of course essential but Culture Due Diligence is often lacking in this process altogether or it is not done with the same level of diligence than the commercial aspects. Yet it is a well-known fact that 60% of M&A transactions fail due to cultural issues. We believe that the value in running a culture due diligence process prior to the M&A transaction is tremendous.
Culture Due Diligence with PEAQ Partners allows you to minimize your risk of failure pre transaction and helps you increase your chances of success post transaction.
We will run a full culture diagnostic to spot the cultural compatibility of the two parties involved in the M&A. All employees from both parties can participate in this assessment anonymously. We find out what the desired culture would look like for each party and compare the results. The higher the alignment of values between the two companies in the desired culture the more compatible they are. The results from this Culture Due Diligence can be used later to clearly define the new joint cultural vision. If there is no alignment in the desired culture at all however it might be advisable not to go ahead with the transaction.
But we don’t just find out how good the cultural match between the companies are. Often there is a difference between the desired and the currently perceived culture. We identify the potential pitfalls and stumbling blocks that you need to be aware of for the Post-Merger Integration process. We can highlight what Company A can learn from company B and vice versa.
Finally, we can also show you whether all members of the two parties together have the potential to actualize the desired culture and what strengths both parties can bring to the table to increase the chances of success.
To inquire about PEAQ Culture Due Diligence assessments email qa@peaqpartners.com or call us on +41 44 586 86 77.