M&As: it’s all about the culture

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

Globally, what percentage of post-merger integrations fail to meet their original objectives due to cultural clashes?

Around 30 percent

Between 50 percent and 75 percent

Less than 20 percent

More than 80 percent 

What percentage of M&A practitioners who have experienced a failed deal cite integration problems as a primary cause?

Between 50 percent and 75 percent

None of the other answers

25 percent

83 percent

What demographic factor is contributing to increased M&A activity, according to John Donoghue?

All of the other answers

A sharp increase in the number of newly qualified accountants

Firm owners who are looking to retire

Mid-career firm owners who are keen to expand 

Which of the following statements is true? Statement 1, Smaller firms are finding it hard to meet regulatory challenges and provide a range of services, or statement 2, Smaller firms may find it hard to attract tax, audit and advisory experts

Neither statement

Both statements

Statement 1

Statement 2

Which of the following statements is true? Statement 1, culture is critical in M&As because it affects employees’ interactions with clients, or statement 2, culture is critical in M&As because it can impact on regulatory compliance

Both statements

Neither statement

Statement 2

Statement 1

Which of the following is NOT listed as an area of focus during M&As?

System integration

Standardised processes

Communication infrastructure

Revised remuneration packages

How does Ifac approach the first two years after an acquisition?

As a period focused on cost-cutting

As a rapid restructuring phase

As a trial period before full integration

As a settling-in period that focuses on relationship building

What lesson did MSD Accountants learn after earlier M&A attempts fell flat?

Systems standardisation should be considered first

Cultural alignment, complementary capabilities and value creation matter

Mid-sized firms will generally make better partners

Growth should be paused during periods of market volatility

What advice do Donoghue and Daly give to firms preparing for M&A?

Allow sufficient time for preparation

Focus on achieving the highest offer

Use external specialist consultants

All of the other answers

The current M&A market...

Currently favours sellers but looks likely to shift in the next 12 months

Favours buyers

Favours sellers

Is changing so rapidly it is hard to tell

1 Unit