Professional Documents
Culture Documents
Acquisitions
Section D, Group 3:
PGP/18/17
8
AKSHEY BHOGRA
PGP/18/18
0
AMRITANSHU ROY
PGP/18/19 KANDIRAJU KRISHNA
4
SINDHU
PGP/18/19
5
KARIDI SIDDHARTHA
PGP/18/21
7
SAURABH AUDICHYA
PGP/18/22
STRATEGIC
MANAGEMENT
CORPORATE
FINANCE
HR
MANAGEMENT
A+
B
+
AB
Acquisition
Anacquisitionis the purchase
of one business or company by
another company or other
business entity. Such purchase
may be of 100%, or nearly
100%, of the assets or
ownership equity of the
acquired entity.
Types
Horizontal
Vertical
Conglomerate
FUTURE
GOALS
INCREA
SE
MARKE
T
SHARE
MUTUA
L
BENEFI
TS
REASO
NS FOR
M&A
WHY M&A?
EXPANS
ION OF
BUSINE
SS
ECONO
MIES
OF
SCALE
DIVERSI
FICATIO
N OF
RISK
Pension
and
benefits
Contracts
liability
Jubilee
Payments
Rewards
liability
People
Costs
Structural Aspects
Absence of good
organizational design
ambiguous goals, lack of role
clarity, inefficient decision
making
Alignment of structure,
process, governance, metrics,
people to fulfil the methodology
of newly integrated company
Work structure, information
flow, KPA re-definition, rightsizing
Unused
Vacations
Health
care
costs
Terminati
on
indemniti
es
New organizational
mission objectives and
strategies
Orientation
programmes, training
people for new roles
Introducing suitable
horizontal and vertical
TALENT RISKS
CULTURE RISKS
Key
Key Talent
Talent Retention
Retention
Leadership
Leadership Style
Style
Harmonizing
Harmonizing Talent
Talent Processes
Processes
Decision
Decision Making
Making Process
Process
Change
Change Receptiveness
Receptiveness
Working
Working Style
Style
Personal
Personal Interactions
Interactions
Beliefs
Beliefs Around
Around Personal
Personal Success
Success
REGULATORY ASPECTS
Regulator
y Aspect
Engagemen
t Aspect
M&A
Human Resources evaluation
Involving HR in early Merger
discussions: HR staff should conduct
cultural audits to ensure that the
organizations are compatible.
If there are discrepancies in management
styles, corporate values, or organizational
structures, HR practitioners can provide
recommendations as to how the
companies can overcome their differences
and establish a common culture
Increasing Communication:
Organizations should inform all
employees concurrently or in advance of
any press release or radio announcement
of merger plans
This will avoid the negative effects of
rumours and gossip which tend to distort
or misrepresent reality
Open and honest communication tends to
explain the employees the reasons for the
mergers and their own position after the
Facilitating in development of
new organizational structure: HR
personnel should ensure that a new
organizational structure is developed
Clear well-defined reporting
relationships are established as soon
as possible.
Identifying Leadership: Clearly
specifying the leadership roles in the
merged entity and removing any
ambiguity
This helps to make transition
smoother
Job Grading/ Banding: Perform a
competency assessment
Pay attention to organizational
culture and willingness of the
leadership to implement
Differences in number of job grades
must be properly accounted for
keeping in mind the sensitivity of this
issue
EXAMPLES OF M & A
Successful
Disney and Pixar
Unsuccessful
Daimler Benz and
Chrysler
Exxon and Mobil
Sears and KMart
Tata Motors and JLR
AOL and Time Warner
Arcelor Mittal
Quaker and Snapple
Hindalco and Novelis HP and Compaq
Source:
http://www.cnbc.com/id/34467713
EXAMPLES OF M & A
Successful
Unsuccessful
Unsuccessful
KEY TAKEAWAYS
As people look inwards to try to find their place in the merged company and attempt to see their
Commun- future in it - or outside it - productivity drops. The grapevine can become a major source of
headaches. Constant, consistent, and honest communication from leaders and HR is essential
ication
It is essential to bring conflict out to the surface and deal with power issues honestly. If one group is
obviously in charge, that should be admitted early on so people dont waste time with secondPower and guessing. Often, people get wrapped up in turf wars which are destructive to both sides, rather than
Conflict
trying to figure out roles for both sides and have a win-win situation.
Organizational culture is an organizations shared values, beliefs, and preferred ways to behave - is a
key to success, and though many talk about it, few seem to have the skills to grapple with culture and
work with both organizations to assure a good fit. Many organizations use a brief cultural fit survey to
Culture
assist them during mergers
Ideally, processes can be examined to see where true synergies lie. In many mergers and takeovers,
power relationships determine operational changes, rather than actual efficiencies or quality
Operations concerns. By making changes with facilitated cross-platform teams, HR can help to ensure that the
best of the two organizations are preserved
CONCLUSION
It is important to avoid quick changes since they cannot be based on a popular
understanding of the acquired organization
THANK YOU