cfo.com

cfo tagline

Worlds Apart

To foster successful cross-border mergers, try cultural due diligence.

Avital Louria Hahn, CFO Magazine
July 15, 2008

Cultural fit in mergers

This article has unusual insight into an often underappreciated aspect of dealmaking. Many M&A pros are well versed in the numbers but the extraordinary practitioners understand personalities, business owner psychology, inter-cultural communication and focus on developing the relationships between the parties. In my opinion, most buyers' due diligence hyper-focuses on the legal and financial aspects of a business, and neglects the personal side. In looking back at the small and micro cap deals I have done, there is a reasonably strong correlation between how well the business performed and how long the seller remained post-acquisition. The length of tenure mostly depends upon the relationship and how well they are working together. Submitted by: Brenen Hofstadter, MBA, CM&AA

Posted by Brenen Hofstadter | October 29, 2008 05:59 pm

CFO Publishing Corporation 2009. All rights reserved.