Mergers : A New State And New Country Involved

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

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

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

In regards to acquisitions, it is important to distinguish between mergers and acquisitions. In a merger, two companies come together and create a new entity. In an acquisition, one company buys another one and manages it consistent with the acquirer’s needs. An acquisition that involves integration has greater staffing implications than one that involves separation (Rizvi, 2008). A combining of companies is a major change. Mergers and acquisitions represent the end of the gamut of options companies have in combining with each other. It is the mergers and acquisitions that are the combinations that have the greatest implications for size of investment, control, integration requirements, pains of separation, and people management issues

The paper differs from others as it will provide insight and evaluation into which event during the merger process had the largest effect and identify whether this was the same for both firms, especially since the merger was undertaken in a tough regulatory environment which contains many “hurdles” (). The results of this paper could be attributed to other firms in the industry or, potentially, to other industries with similar regulatory structures.

The employees are supposed to have alarming beliefs and questionable attitudes toward the merger and if those attitudes do not get properly managed, it will badly affect the company’s performance. The most questionable attitude in this case could be employee’s perception toward management decisions as it could a sense of uncertainty within them. They become more sensitive to their future as any uncertain thought about company’s decisions and actions could let them thin that their job is at stake. Thus staff turnover is quite probable as no employee could thrive in uncertain work environments. Differences in opinions, either professional or technical could also result in employees’ frustration and developing angry attitude resulted by genuine work complaints (Nelson, D. & Quick, J., 2006)

(2015) stated that cross-border acquisition will have cultural differences between countries which need to be viewed carefully during post-acquisition integration. A classic typology developed by Mirvis and Marks (1992) was being illustrated in Appendix 5.1. The types of integration is referring to the degree of change required by the acquirer and the acquired firm. The authors further elaborate the options for integration in Appendix 5.2 based on the structure choices. For example, ‘absorption’ mergers that require fundamental change in the acquired firm, but little change in the acquiring firm. It is essential for the senior managers fully understand of the merger consequences, and at the same time clearly communicating throughout the organization. The key dilemma of the integration process whereby it requires a lot of resources and time-consuming. Hence, it is advisable to undergo full transformation with integrated operational control has the potential to create new dynamic

The initial forming of our new team will be a challenge, but must be done strategically. Since mergers consist of different departments, we will be able to obtain individuals with various different skillsets. This is a positive because these individuals will bring in new and innovative ideas to complete the task at hand. However, this will also cause the individuals to have disagreements on their different ideas. We will need to gather the individuals and encourage open ended discussions, but still work together in order to achieve their goal.

In modern business environments, there are increasing dynamics encouraging firms to utilize mergers and acquisitions to resolve resource. In dynamic business environments, the value of existing resources is subject to erosion, in some instances fast erosion. Consequently, firms continuously respond to changing environmental conditions by upgrading their resources and capabilities via renewal, acquisition, redeployment, and recombination. Mergers and acquisitions provide firms with a practical tool to close their resource gaps, allowing for a much faster reconfiguration of the product mix toward high-profit products than, for example, internal development (Eschen and Bresser, 2005). The need for corporate firms to achieve competitive advantage in a highly competitive global environment has necessitated the implementation of innovative strategies, one of them being mergers and acquisitions (Rizvi, 2010).

Merger and acquisition is a corporate strategy entailing the selling, buying, and combining or dividing business entities in a bid to facilitate rapid recovery or growth. A merger is distinguished from an acquisition in the sense that an acquisition entails a take-over. A merger involves a combination of business assets of two companies forming an entirely new one ADDIN EN.CITE Mehnert2008259(Mehnert, 2008)2592596Mehnert, M.Negotiation: Definition and Types, Manager's Issues in Negotiation, Cultural Differences and the Negotiation Process2008Santa Cruz, CA 95060Hammer, Patrick, Tanja Hammer, Matthias Knoop, Julius Mittenzwei, Georg Steinbach u. Michael Teltscher. GRIN Verlag GbR9783640183234http://books.google.co.ke/books?id=CoeiECIdYUsC( HYPERLINK l "_ENREF_1" o "Mehnert, 2008 #259" Mehnert, 2008). In this paper Mergers, acquisition and international strategies are discussed looking at two companies: American Airlines Group Inc and American Media Inc. the paper discusses these companies looking at the strategies they have deployed in their operations and the possible gains for such strategies.

Through the research review Stahl and Voigt (2004) found that the most important factor for a successful merger and acquisition performance was the degree of relatedness between the two firms. This was due to the fact that it increased the degree of retained autonomy that may otherwise be lost as the cultural differences were similar and so change was minimal. Showing the importance of a cultural fit. It was also found that cultural differences was not a critical problem when acquiring firms with minimal interdependencies as low levels of integration were needed for the two to run side by side. This research review however was limited by the fact that it was basing its research on other available research, restricting itself to already known research. Thus one of the problems that arose was the fact that it was unable to find much research focusing specifically on the

According to Yamanoi & Sayama (2013) found studies that propose the effects of lower post-merger financial performance is due to lack of cultural integration and creates organizational dysfunctions, with interpersonal conflict, organizational communication ineptitude, thus creating employee and executive turnover. With cultural

Lodorfos and Boateng state in their article The Role of Culture in the Merger and Acquisition Process that the “magnitude of cultural differences can effectively impede a successful integration…resulting in poor overall performance” and “cultural heterogeneity creates tensions and affects financial and managerial

Merger simply can be defined as the combination of two or more similar size business entities into one company. Generally, the main aim of the mergers, which are basically a corporate strategy, are acquiring market share with the way of restructing companies to meet requirements in global competition. Prevalent objectives of the Mergers can be mainly counted as improvement of the profit, eliminating competition, utilization of existing resources and reducing tax burdens. However, it should be considered that, merger is a strategic tool for companies to reach their business objectives. Thus, reasonings of the mergers can very from business sector to companies ' priorities.

In an amalgamation two or more companies are combined into one by merger or by one taking over the other. Therefore the term “amalgamation” contemplates two kinds of activities;