83% of cross-border mergers and acquisitions fail to deliver shareholder value.
- Finding by KPMG
The integration of organisational cultures is the most serious challenge facing directors in global companies following a merger or acquisition
- Conclusion of a study by Hewitt Associates, Illinois
Potentially highly profitable international Joint Ventures develop into minefields of cross-cultural distrust and unnecessary conflicts.
Cross-border mergers and acquisitions are prone to unexpected misunderstandings and debilitating incompatibilities - even when the two countries use the same language.
Inevitably, such difficulties also lead to added costs and delays. In severe cases, projects have to be abandoned.