Dealmaking is fraught with challenges. The risks can include overpayment, poor due diligence, regulatory challenges, miscalculating synergies and integration issues. One of the biggest integrations issues is failing to account for cultural differences. At 70% to 90%, the failure rate of mergers and acquisitions deals supports this.

A company’s culture, which develops and is tested over time, is the glue that holds an entity together. When two companies combine, the shared experiences and attitudes that once bound a single company together can become a barrier to cooperation and can lead to an ‘us’ versus ‘them’, rather than a cohesive “we.”