ASSESSMENT OF CULTURAL SYNERGY ISSUES AFFECTING PRE AND POST M&A INTEGRATION PROCESSES

By
Drew T. Puissegur

Florida Institute of Technology
November 2014

Table of Contents
Table of Contents
List of Tables Table I: Qualitative Pre M&A Questionnaire Assessment Table II: Qualitative Post M&A Questionnaire Assessment Table III: Quantitative M&A Performance Questionnaire Assessment
Overview of research question and study objective
Theoretical Framework
Literature Review Topic I: Cultural Benefits and Differences Topic II: Roles of Synergy in an Organizations Culture Topic III: Organizational Performance, Pre and Post M&A
Research Participants
Research Analysis and Design
Proposed Analysis Methodology
Expected Outcomes
References

Table I: Qualitative Pre M&A Questionnaire Assessment

Table 1 illustrates the assessment of the study group’s views on research questionnaire pre M&A. The information detailed in the above pie chart is a representation of the manager’s assessment of short survey questionnaire. The data shows the 65% of strategic and tactical executive managers feel that the M&As integrations will be successful with no concerning issues. Only 15% of managers felt like the M&A integration processes was going to fail pre-M&A.

Table II: Qualitative Post M&A Questionnaire Assessment

Table 2 illustrates the assessment of the study group’s views on research questionnaire post-merger. The information detailed on the pie chart shows the manager’s assessment of the short survey questionnaires. The chart is indicative of the managers changes in assessment from the pre-merger questionnaires sent out prior to the M&A integration. There was a difference in percent from 65% to 48% from the two pre and post M&A integration processes.
Table III: Quantitative M&A Performance Questionnaire Assessment

Table 3 illustrates the assessment of Quantitative M&A performance questionnaire assessments of company and industry ratios. The information detailed on the bar chart shows the company’s and the oil, gas related industry ratios two years prior, and two years past the M&A integration processes. The bar chart shows the performance percentages of the years prior and past M&A performance levels.

Overview of research question and study objective Mergers and Acquisitions are becoming more and more prevalent for companies entering new marketing mixes in an effort to compete in untapped globalized economies. Organizational Culture plays a huge part in the pre and post M&A integration process. Culture defines the organization; it summarizes its business aptitude, employee performance, and the stability of the entity. Unfortunately, cultural issues unsympathetically affect the probability of a synergy environment affecting the success of an M&A surviving in the globalized industries. According to Weber and Camerer (2003), majority of all mergers fail in today’s economy. Historically, there has been no extensive research done to acknowledge the role that culture plays in the success of an M&A. Understanding an organizations culture, pre and post M&A, the chances of success are perceivably high, and very attainable if appropriate steps are taken into account. In addition, M&A technical processes are key and essential to ensure employee and organization synergy satisfaction. In the oil and gas service industry, M&A’s are extremely popular, necessary, and essential in order to remain operationally efficient. These M&A’s typically take place due to globalizing and grouping organizations and sub-organizations in order to link comparable products or services together. Subsequently, it is imperative for corporations to gain knowledge of cultural differences among organizations prior to the pre and post M&A integration process. Cultural issues unseen pre M&A could potentially affect the likelihood of a successful post M&A.

Research Questions The principle behind this research is to investigate the assessment of