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
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This episode is sponsored by the DealRoom
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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