Impact of organizational culture on success of mergers and acquisitions: An analytical study

Corporate mergers and acquisitions became popular across the globe during the last two decades. Although main target behind mergers and acquisitions (M&A) is to maximize value of organizations, yet around 50% of all such endeavors fail to create value for shareholders of acquirers. Disappointing financial performance following M&As is increasingly explained through behavioral difficulties. It is due to failing to consider impact of organizational culture and differences in culture between the acquiring and acquired company would have on the M&A process.;Results showed employees perceive differences in culture of their organization due to the acquisition. This perception greatly impacts the success of the acquisition process. Thus, all efforts should be made to take into account differences in corporate cultures to minimize risk of failure and increase chances of the process success.;This research was based on Denison Organizational Cultural Model. A survey was used to gather input from employees on their perceptions on the importance of culture on the success of the acquisition process in a real case study. It was emailed to sample population to gather input on how they perceive changes taking place in the organization after the acquisition. Results were gathered and a quantitative analysis was applied.