Define the Cultural Due Diligence. How would you address the cultural difference during the merger ?
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2017
Define the Cultural Due Diligence. How would you address the cultural difference during the merger ?
Answer & Explanation:
Cultural Due Diligence (CDD) is the process of identifying, assessing, investigating, evaluating and defining the cultures of two or more distinct corporates through a cultural analysis so that the similarities and differences that impact the merged organization are identified and remedial actions are taken well in advance. It should be carried along with M&A due diligence stage itself. The findings of cultural due diligence would be the base for post integration strategies. How to address Cultural Differences during merger? Formation of strategies for cultural integration. Analyzing the existing cultures. Identifying common aspects and differences. Decide if you want to go on with one of the existing cultures or if you prefer an integration culture. Establish 'bridges' between both companies. Establish a basis and mechanisms for the new culture. Extensive interaction with people. The following mechanism may help in resolving cultural differences: Newsletters and hotlines. Workshops. Surveys, questionnaires and feedback analysis. Synergy teams. Continuous interactions.
Topics: Due Diligence
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