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[Excerpt] Merger and acquisition (M&A) activity has seen a significant increase in the past several decades and 68% of executives at US-headquartered corporations believe this pattern will continue. Although human capital can be the largest expense to impact a company’s income statement, it should be looked at with the lens of being an asset to the company and one worth strategically investing in. Knowing this, it is extremely important for a company to be prepared for any large changes to or impacts on their workforce, particularly during a M&A. In addition, a company must address the question of whether or not to integrate cultures post-merger. The answer is determined by the reason for the M&A; are the companies looking to achieve economies of scale or of scope? In other words, it must be clear what the objective of the merger is for both companies: growing the current customer base or gaining a new one.


Suggested Citation
Clement, TJ & Varón, L. (2018). What are the best practices to follow in order to establish and spread culture for a newly formed company post-merger? Retrieved [insert date] from Cornell University, ILR School site:

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Copyright held by the authors.