Merger And Acquisition Plan
Introduction
Mergers and Acquisitions (M&As) are exciting and mean big money. This activity reached $3.4 trillion worldwide in 1999. It is also fraught with difficulties involving the "marriage" of two cultures. Not only are the principals emotionally charged in the process, but employees, customers and shareholders are also affected. The success rate of M&As is only a startling 25-30 per cent, with productivity generally falling by 50 per cent in the first few months of the announcement. Research shows that most M&As fail for reasons other than money, generally centered around leadership issues, such as unclear roles, poor decision making, rocky integration and cultural clashes. Most organizations get wrapped up in the financial aspect of the integration process and forget about their employees. Merger & Acquisition Consultants (MAC) Inc. will assist the marriage of the two organizations to be a smooth one. MAC Inc. was hired in the very beginning stages of this merger and was asked to start the process of creating the changes necessary to make the acquisition a success. We assisted the leadership of both organizations with input from all the managers to identify all roadblocks and to identify what is most important to the employees. As a result of feedback from the managers and several employees¡¦ surveys, we managed to compile data in the table below. The table has helped us organize our thought process to come up with a strategy to address most of your concerns or questions. This data gathering exercise has helped us identify the areas we need to concentrate on to help you with the merger:
h Address the three phases (pre-combination, combination & post-combination) and their effect on the behavior of the organization and resolve conflicts,
h Identify leadership role in the transition plan,
h Execute a motivational plan to ensure employee retention and performance,
h Revive a Human Resources policy to...
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