Management Of Change During Mergers And Acquisitions

This paper is about two companies that went through same type of change (merger and acquisition) with different outcomes. Merger is combination of two or more companies in which the assets and liabilities of the selling firms are absorbed by the buying firm. Although the buying firm may be a considerably different organization after the merger, it retains its original identity while Acquisition is the purchase of an asset or an entire company (Sherman, A. J., & Hart, M. A. (2005). Chapter 1: The Basics of Mergers and Acquisitions. In, Mergers & Acquisitions from A to Z. American Management Association International.).

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate

Culture is an important factor to consider when mergers occur. One of the most important goals is to keep harmony amongst employees during the process. There is not much one can do for the employees who choose to be disgruntled just because. Another important factor involves the customers throughout the process, making sure daily business is not interrupted.

Sharing information and keeping the lines of communication open with the existing employees and new employees is going to be a vital requirement for this merger. Mergers tend to leave employees anxious which create increased stress and lower productivity rates among employees (Bhaskar, n.d.). An effective communication plan can help mitigate this problem and quickly return the company to full production when the merger has been completed. Starting communication lines early also help reduce the amount of speculation employees have. Even with before a merger deal is completed employees might get a sense of what is going on through a number of different channels. This can lead to

When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case

Also, they don’t prioritize the necessary modifications causing confusion and negative reactions of employees. Some leaders don’t realize how it will affect their employees and begin to lose them. According to Jacobsen, merging companies can influence the companies due to different cultures and not adapting to the changes, In summary, Implementing changes take time to make all the following steps and providing the necessary training.

When there is a significant change being made such as a merger of several organizations there tends to be quite a bit of resistance to the new changes. Even though some decisions are hurtful to some, it is a collaborative decision made by everyone involved. The change initiative stage will define how the stages of change are implemented for the merger and the evaluation of the plan for the merger. When these are made and agreed upon, then for growth and success to occur the newly joined organization will need to provide ideas on sustainability.

Many times anxiety can grow because employees fear loss of the organizations traditions. It is important to involve employees on the transition or modifications to traditions, celebrations, and other activities that help shape the organizations culture. It is important for both organizations in a merger to be sensitive to the others rituals and ceremonies and to work towards a compromise and build new traditions supported by the majority.

India being one of the fastest growing economies in the world, always tried to adopt the most successful practices across sectors. It tries to project itself in the global forum with big and mighty companies in the core sectors. Merger and Acquisitions acts as an important tool for the growth and expansion of the economy. The main motive behind the M&As is to create synergy between the likeminded companies or the strong companies and weakly performing companies. M&As help the companies in getting the benefits of greater market share and cost efficiency. Companies are confronted with the facts that the only big players can survive as there is a cut throat competition in the market and the success of the merger depends on how well the two companies integrate themselves in carrying out day to day operations.

Chapter 13 on mergers and acquisitions (M&As) has been summarised from three classic articles with a visual illustrations in Appendix 1.1.

It has been suggested that problems in managing the post-merger integration of two companies are a common cause of corporate merger failure. In relation to DaimlerChrysler, what were the main successes and problems encountered in its post-merger integration?.

The globalization, from society change to economic growth, is happening more frequently in this world nowadays. Business is one of the most impacted fields of globalization. For the best development and other reasons, more and more businesses have enhanced their businesses from local market or their own countries to global width by mergers and acquisitions. Meanwhile, the conflicts of the mergers and acquisitions occurred as their predictable and unavoidable consequences, leaders and managers should be able to understand conflicts, indentify and classify them, and also solve conflicts and dilemmas. There are many kinds of conflicts and dilemmas of business mergers and acquisitions; one of the most common conflicts is

With the development of social economy, the competitions between the enterprises become more and more fierce. In the market economic ages, the mergers and acquisitions between companies are very common. The mergers and acquisitions are a way which company can get more rights to control another company by buy shares and funds. Also there are lots of problems in mergers and acquisitions such as the element of risk and whether the mergers and acquisitions are helpful to economic market. This essay will make a statement about the advantages and disadvantages of mergers and acquisitions. The approach in researching will be some information on internet, some books, newspaper.

During the integration process after merging, the clash of the human resources and the corporate culture will arise. Merger always takes risk on some extent, so some employees will feel unsafe about their job, which will cause the lost of the human resources. What’s more, to optimize the new employee structure and reduce labor cost, amount of employees will face to be laid off. Such a large personnel change will cut down the investors’ trust, because the investor will suspect the stability of the new combined company. Even two similar technology companies still have different corporate culture which can represent the companies’ brand images and affect the customers’ loyalty. They may produce the similar products, but they may differ in the business ideas and background. Hence, how to integrate two companies’ corporate culture in order to exert the joint corporate value is difficult for the new combined company. If the new combined company abandoned one of the company’s corporate culture, they will lose part of customers who already lose the faith to the company.

According to the case study both companies are in the merger process. During the process there are significant changers applied to the both companies. In this report pre and post-merger processes ware analyzed mainly using following change management theories and models,