New Cultural Due Diligence Methodology Could Be a Game Changer for Companies Involved in M&A’s

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Denison Consulting, the world’s leading authority on culture and leadership, unveils a new approach to cultural due diligence that can help companies realize the potential synergies M&A’s have to offer by pinpointing key cultural drivers of integration success or failure before a deal is made.

This new framework can greatly benefit organizations because it highlights the issues that, if handled well, can lead to a brilliant integration for both acquiring and target firms.

When developing the methodology, Dan Denison, Chairman and Founding Partner at Denison Consulting says that “there was a lot written about the fact that cultural due diligence should be done, but not how it could be done, and be done effectively.” What resulted was a cultural due diligence framework that he believes can help organizations successfully “get a feel for cultural differences and get a sense of key integration challenges before going through with the deal.” Denison believes the framework can greatly benefit organizations because “it highlights the issues that, if handled well, can lead to a brilliant integration” for both the acquiring and target firms.

Denison Consulting’s cultural due diligence framework will helps acquiring firms to better define their targets and reduce risk through a series of minimally invasive activities:

  • Social Media Analysis – An unobtrusive method to narrow potential targets and identify an ideal target by highlighting issues related to an organization’s culture.
  • Stakeholder Interviews – These semi-structured interviews with external stakeholders focus on identifying key strengths and issues from each stakeholder's perspective, giving a well-rounded view of the organization and do not require direct interaction with current employees.
  • HR Data Review – Applying information from the target firm’s internal archival data related to its HR and management practices to the Denison Culture Model as a framework enables organizations to gain additional insight into the target's culture.
  • On-site Interviews – As the acquisition nears completion, interviews with the target firm's leadership team and a sample of the middle managers and front-line employees can further strengthen the assessment of the target firm's cultural strengths and weaknesses and identify potential integration challenges.
  • Synthesis of Key Integration Challenges - Using the Denison Culture Model as a guiding framework throughout the process, Denison synthesizes all of the data sources to help acquiring firms identify the points of synergy, cultural differences, and key integration challenges to create a bridge to the integration process.

About Denison Consulting:
Denison Consulting is a research-based diagnostics and management consulting firm that helps organizations understand their culture to drive bottom-line results. Their approach is rooted in research that links specific and measurable culture characteristics directly to business outcomes. Globally, for over 25 years, Denison has consistently delivered high-impact culture development and leadership solutions that have helped thousands of organizations achieve superior results.

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Denison Consulting

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Jaren Hart
Denison Consulting
+1 (734) 302-4002
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