What if the assets walk?
The value of the people element in M&A evaluations is generally under-estimated, yet it is often the most important element in the equation. The reaction of the “human capital” can mean the difference between success or failure of the new combined organization.
First, the two cultures can be diametrically different from one another. The culture clash can be so enormous that even the best experts cannot blend these opposites.
Second, the combined employee population is usually reduced to eliminate redundant positions. If this is done too quickly, the wrong individuals are often discharged.
Third, the management that helped to make the organizations attractive for a merger or acquisition, is too often ignored in favor of financial analysis of the deal.
Our leadership assessment drastically reduces the risk of failure.
As experts in the assessment of leadership, Cornerstone International Group delivers the missing M&A ingredient: an objective evaluation of management. Such an assessment of the senior human capital can eliminate one of the key reasons that mergers and acquisitions often fail, sooner or later.