Merger and Acquisition Transition Plan

By having the conversation I was hoping to put behind what had accrued and create a process so the situation would not repeat itself.

As the new leader, my first step is to create a transition plan by accessing the current state of the organization and by asking critical questions and getting the answers from the best and most unbiased sources available. Numerous people assuming control of new leadership positions or those with the background to guide them, do not thoroughly consider the changeover process. They

Mergers and acquisitions have become a growing trend for companies to inorganically grow a business within its particular industry. There are many goals that companies may be looking to achieve by doing this, but the main reason is to guarantee long-term and profitable growth for their business. Companies have to keep up with a rapidly increasing global market and increased competition. With the struggle for competitive advantage becoming stronger and stronger, it is almost essential to achieve these mergers. Through research I will attempt to dissect the best practices for achieving merger success.

The board and administrative staff can calm the fears of the staff before and after the consolidation by first reframing using dividing terms such as the word “us” The two organizations will be merging therefore the boards will have to come together to avoid sides. Human resource managers will also need to step in and help manage employees. To help human resource managers can create employee suggestion programs. This will encourage employees to create and identify improvements, process, and outcomes for the

Mergers and acquisitions are a stressful time for any company, regardless if they are the purchaser or the company being acquired. It is important to remember that the goal of this acquisition is meant to positively impact both companies and every one involved is responsible for continuing to bring the customers value. Every department involved is going to have a unique set of challenges and the human resources department is no different. Human resources are going to be responsible for managing any problems regarding employees as this merger continues. In order to prepare for any anticipated problems this report is going to focus on three specific areas; sharing information with employees, managing personnel changes and lastly managing geographical consolidation.

All businesses at one time or another will have to deal with employee layoffs due to a re-organization or changes in the economy. Employee layoffs can have a damaging impact to the remaining employee and management staff. There are several solutions that can be done to alleviate the negative impact and the recommendation is to provide managers with the proper training on how to properly handle a layoff so there is a more positive impact on the remaining staff. Proper training prepares managers for

For management team or an organization layoff is never easy especially if they are good workers. Nonetheless, sometimes it comes unexpected and the company is beginning to go downhill, as well, cost is becoming a factor. Manager now must determine the hardest decision ever of who they must let go and who they would keep during this process of saving cost for the company. In preparation for this management team must come together in addressing to those employees why they reach the decision, provide solid explanation and have concrete facts to support those decisions. Questions will surely be asked why them or why not transfer them to a different department, managers must be able to address those question with absolutely no problem. Meaning, all their ducks need to be to eliminate any outburst from those employees that is being laid off.

Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business

Datatronics is an organization that serves their customers with Enterprise Resource Planning integrated solutions. Their growth is mainly attributed to acquisitions of smaller competitors. E-Z RP was such a company that despite its inferior size compared to Datatronics was able to succeed and outperform Datatronics on grounds of customer service and customer satisfaction. Datatronics recognized the fact and acquired E-Z RP with the aim to improve in that respective area. Just as it is the case with most acquisitions, job uncertainty at E-Z RP came into question when the acquisition was announced, however, all of the employees were able to remain employed. The issue was that most of the positions E-Z RP

It is thought that when firms merge, the price paid by the acquiring firm should be fair value, because that firm is going to invest rationally. Yet, under rational investment, the shareholders of the acquired firm would never sell. For them, the uncertainty of new ownership would reduce the value of the holding. In order to accommodate for cashing out "early", the shareholders of the acquired company must be compensated. The acquiring firm therefore must pay an acquisition premium in order to entice the shareholders of the takeover target. The acquisition premium will depend on the specifics of the deal and the companies involved, where the industry is in the business cycle and whether or not the takeover is hostile (Milano, 2011).

During the recent past however, when the company became a more dominant global competitor and a publicly traded conglomerate, the numbers of employees leaving the firm have increased, generating adjacent problems of employee recruitment, training and retention. In other words, the major challenges currently faced by the company are related to talent management. At a more specific level, the issues refer to the following:

For most, resistance to change inevitable, for some it is their personality and others it is fear of the unknown. Organizational structure may change through downsizing, outsourcing, acquisitions, or mergers. In this paper, I will be examining resistance to change during a merger and how to manage this type of stressful and many times unclear change in an organization. There are three key strategies for managing resistance to change; communication, participation, and empathy and support. Throughout this paper I will discuss the three strategies above as well as some other contributing factors to change in an organization.

In order to move forward and keep ahead, I believe an organization need change leaders who have capabilities to have their workforce go from change avoidance to change acceptance. “One of the most significant strengths of an effective leader is the ability to create a positive work climate where people are energized to do their best work, free of unnecessary distractions” (Cronkite, n.d.). During this part of the change process I feel the change leader would have better success if he would be tactful and harness the skills of others by working in a collaborative rather than hierarchical way. Leadership in an organization involves instilling motivation and enthusiasm in the employees. An effective leader knows how to manage and tackle difficult situations and people. Many reasons can cause a force of change in organizations but I feel it’s up to change leaders to manage these planned and unexpected changes. (Word count: 548)

A business mergers and company expansion can be a lengthy and costly process, but if there is a strategic plan that is in place this process can be done in a effectively and efficiently fashion. The definitive goal for the HR department is to be able to successfully employee all the employees of the merger, and place them inside new positions within our global locations. Fast growing companies need to cost-effective, flexible and adaptable in today’s global economy.

Table 1-1 shows the summary of mergers and acquisitions activities in Malaysia for the year of 2011 and 2012. Based on the table, there is an increment of transaction value (in US$m) for both announced and completed mergers and acquisitions in Malaysia. The value of announced mergers and acquisition increase 20.14% from year 2011 to 2012. While the value of completed mergers and acquisitions in Malaysia increase about 48% from year 2011 to 2012.