Dollars & Sense: Merging Cultures Post-M&A
By Marcus Nicolls Senior Vice President and Business Unit President, Partners in Leadership (PIL) | July 24, 2016
Co-authored by Mattson Newell, Area VP & Leadership Consultant, Partners In Leadership
A super platinum-everything status guest with a certain brand hotel chain walked into one of his favorite properties after this brand recently merged with another chain, looked around and said, "It just isn't the same. I don't even recognize them anymore." He then walked out of the door determined to find a new favorite property he could count on.
Does this sound far-fetched to you? It shouldn't; it happens all too often, and it should send chills down every leader's spine. While this anecdote focuses on the guest, you can imagine the impact this would also have on the employees.
Mergers and Acquisitions (M&A) can surely impact the bottom line in the short term, but more importantly, they can also impact guests, team members, and anyone associated with a brand. Unfortunately, these components often get lost in the short-term activity and shuffle. In a world where M&A can happen anytime, to (almost) any company, leaders need be prepared and know how to manage and facilitate the process.
Dollars and Sense
In 2014 global mergers and acquisitions grew to a record total as Bloomberg reported that acquisitions of hotels, travel services companies, and tour operators in 2014 totaled $64.4 billion, more than double the amount that had been done the previous six years. 596 total deals were announced during 2014, and it looks like 2015 is poised to have the same flurry of activity, but the question remains, how do you increase the likelihood of success during an M&A?