Can Corporate Culture and Managment/Leadership Styles Inhibit/Promote Success in Mergers and Acquisitions - Essay Example

This essay declares that success comes with a holistic approach where people’s aspirations form an integral part of the financial performance of the business. If the acquirer selects the appropriate integration approach among the available alternatives, invests sufficient time and effort to extract from its own past-acquisition experiences and uses this knowledge constantly to improve its management of the integration process, then the post acquisition performance of its transaction should be superior to the one of its competitors that selects sub-optimal approach.

The analysis of this study will be based on a survey questionnaire so as to get an idea as to whether cultural conflicts and managerial styles influence the overall outcome in merger and acquisitions. Due to the dynamics and complexities of the subject, the questionnaires will be limited to few companies. This paper stresses that mergers and acquisitions occur when the assets and the activities of two independently controlled corporations are combined under the control of a single corporation.

They are undertaken by companies to achieve certain strategic and superior financial objectives. Increasingly merger and acquisitions have assumed an international dimension due to global economic integration and the dismantling of barriers to trade investment. Competition has become a global issue where companies have to compete not only in the domestic market but also in foreign markets so as to maintain their competitive edge.