Mergers And Recquisitions Case Study

Mergers and acquisitions are inherently difficult for everyone involved. The goal of a merger or acquisition is to create an organization that is stronger than what it was prior with as little disruption as possible. A successful merger requires a group of individuals who are tasked with thoroughly looking at everything from both organizations. Areas that require more attention than others include employee perceptions, stress, engagement and motivation, communication and organizational structure. Mergers are best accomplished in phases to ensure that all details are completed before moving on to the next step. Mergers are accomplished in the following five steps: create a team, do the homework, create a plan, execute the plan and reviewing …show more content…
According to Podgorski and Sherwood (2015), to successfully navigate a merger it is best to have a varied team of experts (p. 46). Once formed, the integration team needs to create a communication plan to announce the merger, but also be prepared in case the merger is leaked prematurely. When communicating the message of the merger, “The medium of choice in most workplaces today is email” (McShane & Von Glinow, 2013, p.263). Initial communications drafted should be sent to the relevant managers of each department so that they can discuss the merger in person with all the staff. Timely communication is needed to help alleviate stress that may be caused by a merger leaking before a plan is in place. A successful merger starts with including all the key people that will ultimately make the project …show more content…
The culture of both organizations is best discussed early on because, “What is needed is ‘a far higher level of analytical rigor on issues like culture and organizational health that clearly have the opportunity to spoil and tank the best-laid plans” (Leadership, p. 1). The goal is to determine where the cultures of the two organizations clash and come up with a plan to allow them to mesh. The next important part of the merger is to assess human capital. Talented individuals are likely to leave the organization in the middle of a merger because they worry about having a spot in the new organization. As Podgorski and Sherwood (2015) noted early in the merger planning is when,” Talent assessments can help the acquiring organization target key players for aggressive retention strategies” (p. 48). Staff should be interviewed during this time to tabulate the data needed to plan the integration. In summary, time must be taken to investigate not only how the two companies cultures will come together, but also potential positions that the employees will be