Navigating through cultural differences in crossborder mergers and acquisitions

The number of unsuccessful M&As is high and some scholars blame the merging partners for underestimating the importance of culture, especially in cross-border transactions where the dual nature of culture exists. Because cultural differences are too often poorly addressed, the paper attempts to answer the following question: How can a framework be designed to manage cultural differences and ensure an effective post-merger integration process? The analysis of four cross-border M&As (two successes and two failures) shows that cultural distance can be an asset or an obstacle to achieving integration outcomes depending on how it is managed. Drawing on the case study findings and literature, the author develops practical steps that merging partners can follow to ensure a smooth blending of cultures in international contexts