Amanda Bonney and Dillon Papenfuss
Applying the Mergers and Acquisitions Synergies Framework to the HP-Autonomy shows the cultural missteps that resulted in a failed merger.
Lack of communication by both HP and Autonomy lead to Autonomy functioning as an independent unit. Communication, as a result, never developed.
Friction and distrust resulted from differences in behavior between HP and Autonomy. One company focuses on tasks, while the other focuses on relationships.
Differences in management lead to a large disconnect between the HP employees and the Autonomy employees.
The environment, specifically the perception of the public, lead to negative media coverage and concerned shareholders.
Differences in accounting practices, especially revenue recognition, created a disconnect between HP and Autonomy. This led to a massive write down on HP's books and eventually the sale of Autonomy.
HP and Autonomy give a great example to the importance of understanding synergies when making a cross-border deal.