Professional Documents
Culture Documents
Mergers
Definition of 'Merger'
The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. Basically, when two companies become one. This decision is usually mutual between both firms.
Horizontal Merger
Conglomeration merger
Vertical Merger
Merger Deals
January 30, 2007 Largest Indian take-over After the deal TATAS became the 5th largest STEEL co.
share
Difference
Intention
Poor
When one business acquires or is merged with another, the result is essentially a brand new organization. Managing that change is a complex and time-consuming process, with significant implications for all concerned. Employees of the two companies are affected in different ways, but there are a number of fundamental impacts to be considered.
Reduced
Changes
New
Competitiveness
Reduced
HR interventions
Cultural and people issues that have a major impact on success / failure of cross-border Merger deals:
Composition of new board Who will occupy which job? Undertaking a human capital audit and selecting the management team
Effective communication
Retaining talent creating the new culture Aligning performance evaluation and reward systems
Integration
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