Cultural Diversity as a Source of Value Creation in Cross-border M&As

Mergers & Acquisitions - the most volatile events in corporate life including fantastic synergies as well as value-destroying disasters“ (Rikard Larsson 2005). Cultural differences can be the factor that makes or breaks a deal. Unity through diversity – is probably not the guiding principle for every transaction undertaken but it is important to realize that cultural differences have the potential to create additional value in cross-border M&As. While cultural synergies might necessitate going the extra mile these synergies might just be the ones to set the companies apart from their competitors.