ABSTRACT
The main reason for merger disappointment or failure is the lack of an integration strategy or a failure to appreciate the difficulties of merging two different cultures. Fusing the formal systems, such as accounts, payroll, and financial reporting, has its difficulties, but these pale in comparison with the problem of integrating cultures. Merging organizations always employ experts to do a financial due diligence report before the merger; they almost never do a cultural due diligence report. What the acquiring organization often fails to recognize is that if the cultures cannot be integrated, the chances of financial success are minimal.
