Provides research outcomes on the impact of managing -- or failing to manage -- cultural integration as part of the acquisition or merger process. It outlines the most pitfalls and presents a step by step guide to preventing or overcoming them

1. Does the Soft Stuff Really Matter? Jeff Walsh EVP KLC Associates Karen Cornelius President KLC Associates

5. What do the data show?* Post merger performance of acquirers versus industry sector peers on financial indices: *Vestring et. al. 2003 Proactive cultural integration +5.1% Ignored cultural integration -4.4%

6. What do the data show?* Post merger performance of acquirers versus industry sector peers on financial indices: *Vestring et. al. 2003 Scale-driven deals Scope-driven deals Proactive cultural integration +5.1% +6.4% Ignored cultural integration -7.9% -0.5%

8. Managing Cultural Integration

17. … So, what do you do to avoid pitfalls and successfully manage integration ? Corporate Cultural Differences Successful Integration

28. Implementing Cultural Integration Outcomes Customers and Stakeholders

29. Managing Cultural Integration – The Soft Stuff Does Matter Karen Cornelius President KLC Associates Jeff Walsh EVP KLC Associates

31. Where M&A pays or strays Strategic motivation Opportunistic motivation Value acquiring Momentum growth/glamour Focused/related acquiring Unrelated diversification Credible synergies Unrealistic synergies Use excess cash profitably Just to use excess cash Negotiated private purchase Auction of public firm Cross border for advantage Cross border naively Go hostile Negotiate w/resistant target

32. Where M&A pays or strays Buy during cold M&A market Buy during hot M&A market Pay with cash Pay with stock High tax benefits to acquirer Low tax benefits to acquirer Judicious leverage Over-lever Earnouts/staged payments Pay in full up front True merger of equals Not a merger of equals Mgt has significant stake Mgt has low or no stake Shareholder-oriented Entrenched management Active investors Passive investors