Post-Merger Integration

One of the most difficult change efforts in an organization is likely to occur when it is involved in a merger or acquisition. Extensive research into the last 30 years of M&A activity shows that over 70% of completed M&A’s fail to achieve the initially intended financial objectives. Most acquiring firms actually lose money on the acquisition. A series of follow-on studies have shown this lack of success is primarily due to the failure to effectively assess and manage the integration and alignment of the cultures of the two or more companies involved.

Vector Group has unique and deep expertise in the successful implementation of mergers and acquisitions worldwide. Our consultants are experts in cultural due diligence, assessment and integration and have helped many organizations achieve post-merger success over the past two decades. Vector’s cultural assessment process documents and measures current managerial and staff behavioral patterns and contrasts those to the patterns the organization requires to successfully implement its strategy. This assessment is done without using any pre-determined scales or cultural attributes. It is an objective process which makes no assumptions about what does or what should exist. The appropriate behavioral patterns for any company are at minimum dependent upon its industry, its strategy, its location in the world, its own unique history, and its competitive position.

The fastest and most cost-effective way of aligning two or more cultures into an effective organization is when the organization is part of the M&A process from the beginning and a detailed people / culture integration plan is ready to roll out with the close of the deal. However, Vector Group has a sterling record of successfully intervening in troubled M&A’s at all stages of the M&A process. This includes coming in well after the deal is closed and in-fighting between the merged groups (culture clash) is full blown and seriously jeopardizing any hope of organizational success.

Effective Cultural Integration will speed the achievement of desired results by minimizing customer, investor and employee confusion and dissatisfaction for the merged organization. Vector Group’s processes will allow the new organization to deliver excellent results by any measures of cost, quality and efficiency while at the same time building energy, loyalty and commitment to the organization from the management and staff.