There is an exponential growth in which mergers and acquisitions are becoming the trend among organizations to gain competitive advantage. Mergers and acquisitions seek to develop market power through expansion of boundaries and acquire unique potential. Successful merger and acquisitions provide opportunities for organizational growth, as well as offer several benefits; but in turn can face many challenges, in which the acquisition fails. In the case study, Can This Merger Be Saved? S. Cliffe, (1999), two companies face the benefits and challenges of a successful merge.
Synergon Capital, was a U.S. financial-services phenomenon, that prided on their ability to utilize practices of Product and Market Extension M&A; acquiring small companies …show more content…
Beauchamp’s employee’s business performance is at a slump due to Synergon’s aggressive changes. Beauchamp is capable of operational execution, and can adapt to Synergon’s tactics, with time. Nick Cunningham should execute several practices to salvage this acquisition. First, Cunningham should appoint a manager from Synergon, to assimilate the firms through training. This person can be the point of contact for Beauchamp to gradually adapt to Synergon practices. Next, Cunningham needs to establish strategic expectations. For example, the details of financial targets, introducing Beauchamp’s customers to Synergon, and what the goal for increasing profits will be for Beauchamp. In addition, Cunningham needs to identify the cultural differences between the organizations, why they exist, and begin to come to an understanding through partnership. Establishing this partnership will result in a consensus of approaches to business results and gain respect for each other’s firm. This step is essential to the acquisition. If Cunningham fails to mend the relationship between the two organizations, key employees will leave, integration of the firms will lag, and the acquisition will suffer. “back off” with pushing their processes and values, embrace Beauchamp’s, and let Beauchamp execute efficiently as they have (which is one of the essential characteristics that encouraged Synergon to …show more content…
The two powerhouses should reconsider their integration strategy and identify what is important to both firms. Mergers and acquisitions tend to fail when the strategy is unclear. Cunningham and Synergon did an excellent job identifying that Mansfield is the key to success, but hurt the relationship in the process. Mergers and acquisitions have many challenges, but can lead to great successes. Identifying the correct type of merge, conducting a human due diligence, and executing an efficient strategy to benefit both firms will result in a win-win
Synergon Capital, was a U.S. financial-services phenomenon, that prided on their ability to utilize practices of Product and Market Extension M&A; acquiring small companies …show more content…
Beauchamp’s employee’s business performance is at a slump due to Synergon’s aggressive changes. Beauchamp is capable of operational execution, and can adapt to Synergon’s tactics, with time. Nick Cunningham should execute several practices to salvage this acquisition. First, Cunningham should appoint a manager from Synergon, to assimilate the firms through training. This person can be the point of contact for Beauchamp to gradually adapt to Synergon practices. Next, Cunningham needs to establish strategic expectations. For example, the details of financial targets, introducing Beauchamp’s customers to Synergon, and what the goal for increasing profits will be for Beauchamp. In addition, Cunningham needs to identify the cultural differences between the organizations, why they exist, and begin to come to an understanding through partnership. Establishing this partnership will result in a consensus of approaches to business results and gain respect for each other’s firm. This step is essential to the acquisition. If Cunningham fails to mend the relationship between the two organizations, key employees will leave, integration of the firms will lag, and the acquisition will suffer. “back off” with pushing their processes and values, embrace Beauchamp’s, and let Beauchamp execute efficiently as they have (which is one of the essential characteristics that encouraged Synergon to …show more content…
The two powerhouses should reconsider their integration strategy and identify what is important to both firms. Mergers and acquisitions tend to fail when the strategy is unclear. Cunningham and Synergon did an excellent job identifying that Mansfield is the key to success, but hurt the relationship in the process. Mergers and acquisitions have many challenges, but can lead to great successes. Identifying the correct type of merge, conducting a human due diligence, and executing an efficient strategy to benefit both firms will result in a win-win