Mergers And Acquisition Analysis

Mergers and acquisitions represent a major source of organizational change. If companies can identify the need for change, design the changes required and implement them effectively and efficiently, they would be more likely to survive and prosper.

However, problems can occur with M&A such as commitment and engagement disintegrate during the process and a bond is unlikely to form immediately with and for a new organization (Pierse, 2012).

The purpose of this paper is to study the concept of M&A and its impacts on Employee engagement in the first part. Then, the objectives are to find out the major issues associated with post merging situations with special emphasis on the human aspect. To finish this analysis, the document will provide some best practices and describe main challenges to fit with the new organization with the actions of different actors.

Main Points

The importance of the Human factor

Definitions

Definition of Mergers and Acquisitions (M&A):

A merger or an acquisition can be defined as the combination of two or more companies into one new company or corporation. The main difference between a merger and an acquisition lies in the way in which the combination of the two companies is brought about.

Mergers occurs when two companies combine their operations and participate as equal partners in order to achieve strategic and business objectives (Sudarsanam, 2003). Whereas, an acquisition occurs when one company takes over a second one - can be friendly or hostile - and obtains control to determine how the combined operations will be managed (Shook & Roth, 2010).

M&A are rational and strategic alliances that are conducted in the best interest of the organization and its shareholders in order to improve the financial ...

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...tivity and finance).

A clear expression of the values and the new corporate culture will lead to the optimal culture state needed to have a successful business. The change plan should detail the actions and processes that will create a unified, invigorated, engaged and committed workforce.

Effective communication is a powerful tool for supporting and accelerating organizational change. The investment of time, energy and resources in communication not only wins the hearts and minds of employees but inspires greater productivity with a direct and immediate impact on the bottom line.

Leadership: “Employee engagement tends to improve when HR and line management follow good practice principles” (Rankin, 2008). Transformational leadership will be positively associated with employee post-merger satisfaction and become a trigger of change which encourage people to openness.