Mergers and acquisitions in Japan

Successful post-merger integration is the key

2007

From May 2007, legal changes will make it easier for foreign companies to buy Japanese ones via an exchange of shares. However, the success of a transaction is determined by post-merger integration, which still has some aspects unique to Japan. If management takes into account these cultural differences in the first few months after the merger, considerable synergies and a successful fusion with the Japanese firm are possible. These are the results of a survey by Roland Berger Strategy Consultants among over 30 top managers involved in mergers and post-merger integration. The managers were interviewed and completed a written questionnaire.

The survey shows that a lack of information about cultural aspects unique to Japan can lead to major problems with mergers. "This is a surprising finding, considering that so much has been written about Japan and Japanese companies," says Dr. Dirk Vaubel, author of the survey and Partner at Roland Berger Strategy Consultants in Tokyo.

Based on the survey, the interviews and many years of consulting experience on post-merger integration projects in Japan, the consultants have defined eight success factors for successful integration.