As the financial value of many companies in Norway and EU are unpredictable in 2018, there are risks and opportunities in oil related and engineering companies acquisitions. Financially well supported actors and investors will look for mergers and acquisitions opportunities. Rich company takes over poor company. Big asset companies buy small companies. Companies in distress look for additional investments. Big enterprises look for innovative startups with an entrepreneurial.
The financial challenge is finding the right company value and fair pricing. Assets are easy to count and summarize. The people capital, however, may be tricky. Is the company worth as much if the leaders and key people have left the site? Is the acquired company able to work for the acquiring management group? Commercially, is synergy possible? Who will be the leading thinkers? What will be the dominating mindsets? And how can you as an investor find out?
The culture capital in any company defines its potential to master complexity, solve multiple problems, work across cultural barriers and innovate. How can this culture capital be scientifically assessed and how can the result indicate pricing and suggest an efficient and effective way to integration?
The culture capital can be assessed through culture assessment. In a digital platform enabling surveying, segmenting, visualizing and integrating, investors can analyze the human capital potential. This will be the investors´ guide to pricing, integration, keeping the right leaders and people strategy in the post-merger.
Having done the culture assessment, the integration process will be shorter, faster and cheaper. The two parties involved in a merger will have precise insight in their pre-merger cultural map, and can build the merged culture map together.
70% of all mergers fail, mostly because people cannot work together. Understanding the whys and finding the hows from the culture maps and mindset reports, will improve the success rate. As culture has a significant impact on business performance, culture driven due diligence seems long overdue. Also knowing that a culture map is possible to survey and generate in less that two hours, the barriers for culture driven mergers are gone.