
Mergers and acquisitions usually look great on paper. The numbers line up, the strategic goals are clear, and the combined company is expected to do more than either one could alone. But the hard part starts after the deal is signed. Thatโs when cultures collide โ and if itโs not handled well, the damage can be hard to undo.
A McKinsey study revealed that around 70% of mergers fail to achieve their expected value, and culture mismatch is one of the biggest culprits. That failure shows up in different ways โ missed goals, turnover, low morale โ but it all boils down to the same thing: the people’s side of the deal gets overlooked.
This directly affects what happens to employees when companies merge. Roles shift. Processes change. Some people feel left out of decisions, while others arenโt sure where they stand. If thereโs no plan for how to guide people through that shift, things start to break down โ and fast.
Why Culture Isnโt Just a Soft Concept
Ask a dozen people to define culture, and youโll get a dozen different answers. But in a business context, culture is what shapes how work gets done. Itโs not just mission statements or team lunches โ itโs about how decisions are made, how people communicate, and what gets rewarded.
When leaders focus only on what mergers and acquisitions are from a legal or financial angle, they risk missing the invisible glue that holds teams together. Culture doesnโt show up on a balance sheet, but itโs often what makes the numbers possible.
Two companies might both be successful, but if one values speed and informality while the other prizes structure and chain of command, things can get tense quickly. Thatโs why culture needs as much attention as systems and processes โ maybe more.
Donโt Wait โ Start Culture Work Early
Integration planning usually begins with tech stacks, reporting lines, and customer systems. Culture should be right there too, and not as an afterthought. Start with a basic cultural assessment: How do decisions get made? What are the unspoken rules? What does each team believe โgood workโ looks like?
Even in straightforward deals like a horizontal vs vertical merger, the day-to-day experience of employees can vary more than expected. In a horizontal merger (two similar companies), the challenge might be about pride or ownership. In a vertical one (e.g., a supplier merging with a buyer), the pace and expectations of work might feel totally different.
These examples highlight just two of the many types of mergers and acquisitions, each presenting unique challenges when it comes to aligning teams and cultures. Mapping those things out early helps avoid misunderstandings that can turn into resentment.
Listen, Donโt Assume
The most effective way to understand your people is to ask them. It sounds obvious, but itโs often skipped in the rush to make decisions. Use informal listening sessions, pulse surveys, or structured feedback tools to get a sense of what people are worried about โ or hopeful for. These are moments where post-acquisition survey questions can reveal what spreadsheets never will.
Ask things like:
- What are you proud of in your current team?
- What do you hope doesnโt change?
- What worries you about the merger?
- What support would make this easier?
Honest answers to those questions are a goldmine for integration planning. They can also shape the tone and content of internal communication moving forward.
Create the New Culture Intentionally
Successful post-merger integration depends on more than combining org charts โ it requires a deliberate effort to shape how people work together in the new organization. A merger is an opportunity to reset โ to decide what kind of company you want to be, not just which systems or roles carry over. But that doesnโt happen by itself.
The best cultural integrations are designed. Leaders from both sides work together to define shared values, new ways of working, and a vision that people can get behind. Itโs not about compromise for the sake of it โ itโs about choosing what serves the future business best. Teams are more likely to buy in if theyโve been part of that process. Involve them. Give people the chance to shape what comes next. Thatโs how you build trust and momentum.
Equip Managers to Lead the Transition
Managers are the ones fielding questions, calming fears, and helping their teams navigate uncertainty. They need tools, not just talking points. Give them guidance on how to answer the questions employees ask during acquisition โ things like, โIs my job safe?โ or โWill our benefits change?โ Make sure they know how to talk about whatโs still unknown without losing credibility. Managers also need a space to share their own concerns. The more supported they feel, the better they can show up for their teams.
Spot Trouble Before it Escalates
Even with the best planning, there will be bumps. The key is catching issues early before they turn into lasting problems. Some common post-merger integration issues to watch for:
- Duplication of roles or unclear ownership
- One-sided decision-making
- Mixed messages from different parts of leadership
- Resistance to change from legacy teams
These can all be addressed โ but only if theyโre acknowledged. Create feedback loops that help surface these patterns early, then act on what you hear.
Culture Clashes are Inevitable โ Plan for Them
Especially in large or cross-industry deals, culture alignment takes real work. Each side will have its own rhythm, language, and set of assumptions. Accept the differences, mention them, and work on connecting them. Sometimes, there is added friction from little behaviors such as starting a meeting a certain way, providing feedback, or involving people while making decisions. Naming those differences gives everyone a common language to work through them.
The People’s Risk is the Real Risk
Everyone talks about financial and legal risks during M&A. But mergers and acquisitions risk often comes down to whatโs happening with your people. If theyโre confused, disengaged, or quietly frustrated, the long-term cost is massive. Turnover rises. Innovation stalls. Customer experience suffers. And the deal you worked so hard to close never quite delivers what you hoped. Avoiding that outcome means doing the less glamorous work of culture integration โ and taking it seriously.
Conclusion
Mergers and acquisitions might start with numbers and contracts, but theyโre lived out in team meetings, hallway conversations, and email threads. If you want your deal to succeed, you need a plan for how people adapt, connect, and carry the business forward. A strong integration isnโt about preserving one companyโs culture. Itโs about building a new one together. And that takes time, trust, and a willingness to do more than check boxes.
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- Mastering Cross-Cultural Management: 5 Essential Strategies
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- Best Practices for Managing International Teams Across Europe
Daniel Raymond, a project manager with over 20 years of experience, is the former CEO of a successful software company called Websystems. With a strong background in managing complex projects, he applied his expertise to develop AceProject.com and Bridge24.com, innovative project management tools designed to streamline processes and improve productivity. Throughout his career, Daniel has consistently demonstrated a commitment to excellence and a passion for empowering teams to achieve their goals.