Cultural fit is often overlooked but can be a key element in a successful deal. Business owners need a detailed understanding of their own company culture and that of the target company to ensure a good fit. This includes management practices and ways of working, particularly given the new post-pandemic hybrid and working-from-home employment models.
Failing to consider culture can lead to problems with integration, such as difficulties instigating new working practices and protocols, or resentment when employees can’t access the same benefits as their new colleagues.
It’s important to identify the cultural elements that are essential to the success of the deal: for example, financial management, operations, or innovation. Business owners should compare the two cultures, decide which parts to preserve from each, and ensure those elements are not lost during the takeover process.
Finance and legislation will always be top of the agenda when preparing for a cross-border deal, but cultural fit should never be an afterthought, especially given the contrasts in working practices in different countries. Once again, a knowledgeable local advisor is the essential prerequisite for a successful deal. The right M&A specialist will have relevant expertise in legislation, cultural differences, economics, and industries in the country where you’re buying or selling a business and can help you expedite the deal with speed and efficiency. For the best possible outcome, it also pays to choose someone with specialist sectoral knowledge. Finally, when engaging in a cross-border deal, make sure the chosen advisor has previous experience of international deals and is aware of all of the complications they can entail.