Performing Cultural Due Diligence to Better Understand the Target Company

Ken Bond, Head of Corporate Development at Cetera Financial Group. Most of the biggest M&A failures of all time are caused by culture clashes. Both companies cannot simply co-exist with each other, and instead of creating more value, they destroyed both of their businesses. This is why cultural due diligence is crucial in M&A.  In this episode of the M&A Science Podcast, Ken Bond, Head of Corporate Development at Cetera Financial Group, shares his expertise on how to perform cultural due diligence to better understand the target company. Things you will learn: • The person responsible for cultural due diligence • Executing cultural due diligence • Using Playbooks • Successful partnership between Corporate Development and Integration • Advice for practitioners ****************** This episode is sponsored by the DealRoom Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at www.dealroom.net. ****************** Episode Bookmarks 00:00 Intro 05:11 Person responsible for cultural due diligence 05:54 Importance of cultural due diligence 08:08 Executing cultural due diligence 10:29 Killing the deal due to cultural conflict 14:54 Using Playbooks 17:31 Cultural due diligence during early conversations 20:12 Understanding how the target company makes decisions 22:40 Things to look for during due diligence 25:09 Using questionnaires for cultural due diligence 27:08 Bilateral deal vs. Auction process 30:10 Hardest part of cultural due diligence 32:27 Successful partnership between Corporate Development and Integration 35:33 Subculture due diligence 37:07 Advice for practitioners 38:31 Craziest thing in M&A