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"Not true. It's the soft and squishy stuff that will make or break the deal."

After understanding the steps for a merger, the major considerations associated with a firm's culture are the chemistry or compatibility of the individuals and do they share a common philosophy of how to do business. Stating the common goals for two or more diverse groups is a lot easier than achieving those goals...

Stating the common goals for two or more diverse groups is a lot easier than achieving those goals. Cultural goals such as quality client service and teamwork are generally common to most firms, but how they achieve those goals may differ dramatically.

To determine if potential mergers complement one another and if a common operating culture exists a these questions must be addressed:

• How do partners show their commitment to quality client service?
• Are there major differences in the compensation systems of the respective firms, as to partners' earnings and staff salaries?
• What are the work ethics prevailing in each of the firms?
• What are the competencies of personnel? Are they comparable?
• Do the available technical resources in each firm complement one another?
• What is the turnover rate for staff and administrative personnel?
• Have there been partner departures, voluntary or involuntary?
• Are there any client specialties or special services?
• How comparable are the average total hours worked, as well as chargeable and billable for like personnel categories?
• How does the investment in computers, office equipment, and other office facilities compare?
• What direction is the marketing effort taking, how much is being spent, and are there any benchmarks?

Is a merger still a merger when the respective sizes of the firms are ninety percent and ten percent? Is it just an acquisition, where the ten percent should quietly accept the culture of the ninety percent?

Whether you call it a merger or an acquisition, each firm has its own culture, and the smaller entity, if substantially different from the one around it, will continue to survive as a discordant subculture, unless an effort is made to integrate all the players...

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