our mergers & acquisitions approach

Mergers & acquisitions continue to be a critical strategic tool for Australian corporations looking to drive tangible bottom line improvements. M&A offers the promise of rapid growth, and bottom line benefits in a world where CEOs are under increasing pressure to drive short term improvements and where stakeholders are becoming more and more impatient with below average share-market performance. The challenge is that few organisations actually deliver on this promise – in fact over half of all mergers fail to deliver the anticipated benefits. Why is this, and why does the M&A option look so good on paper, but success is rarely achieved in reality?

Mettle’s approach to these human element related M&A issues first involves managing the initial emotional response - the state of mind - of the acquired or merged personnel by making them feel welcome, valued and certain about their future. How they feel then determines their level of engagement with, and commitment to, the new identify. The second process is at the heart of the cultural integration. It is the process of aligning the mindsets of the personnel in both organisations. This deeper challenge of achieving a shift in mindsets is one that few acquirers consider, let alone understand what it involves or how to do it.

Getting the intangibles right is critical

As reported in the October 2007 ‘Human Capital’, Iain Hopkins writes the corporate world is littered with M&As that have crashed and burned for failing to consider one crucial element: corporate culture. For Jeremy Nichols, Managing Director Mettle Consulting, an M&A is essentially about change - in processes, practices, culture, the 'way things are done' - and change needs to be negotiated delicately. "When people go through an emotional shift it creates a whole range of responses, which in turn can lead to thinking, 'my way is better than your way'. You've got a clash straightaway, and when it comes to M&As, often organisations spend time on the wedding and not enough time on the marriage - it's all about the event, rather than about building the basic values for lasting success," he says.

M&A’s: Making the marriage last

The corporate world is littered with M&As that have crashed and burned for failing to consider one crucial element: corporate culture. Iain Hopkins investigates why this eternal intangible is so important.

Despite countless organisations spruiking the motto, 'our people are the key to our success', it's interesting to note that when it comes to major corporate upheavals such as M&As, the people are often neglected. It's assumed everyone will simply go along for the ride, wherever that ride may be heading... read more

For more information, please contact Justin Papps