Chapter 4 Who uses the output of this work? Some examples of how the results of the culture work can be used by the typical stakeholder groups in M&A are: Corporate development and the business unit leading the acquisition: The stakeholder group that initiates culture This was a problem in one of our work. The work provides the needed information for three bigger deals. We had so many key purposes: people involved in the integration 1. To present to the board or deal committee for ongoing process, from both sides. We review. collaborated exceptionally well, and 2. To gain a better understanding of the deal as a whole and the integration management and the complexities of the acquisition integration. process itself was flawless from 3. To ensure the focus on business stabilization is a priority. that perspective. But our business The focus on business stabilization warrants some further performance was not, and it took us explanation. This goal is particular to M&A situations where some time to figure out why. productivity drops are a real feature of transactions, and typically surface once a deal is announced. This can impact Our business began slowly to show buyer and seller pre-close and then the combined business a downward trend as we realized post-close. that our pipeline was not as strong The first impact is typically on the target as their workforce as before, the number of proposals becomes aware that their future is about to change. But there showed a decline and our success can also be an impact on the buyer’s workforce if significant rate in sales pitches dropped, all changes are expected to their business as part of the adding up to less business. We could integration strategy too. It’s difficult to achieve any other goal not understand why, until we started if the base business starts to decline. Some examples where looking at how some of our key this shows through is in revenue declining, more clients or consultant talent was spending their customers than normal leaving, new clients not coming in or key people leaving, or all the above. time. Too much of the key talent that we should have had focused on the market, on selling and delivering, were instead involved in integration planning and other meetings. We lost focus, but our competitors did not. In fact, I believe they ramped up their attention on our clients and prospects.” Chief Executive Officer of a consulting firm Building the business case for culture in M&A 7