A STUDY ON MERGERS AND ACQUISITIONS –ITS IMPACT ON MANAGEMENT AND EMPLOYEES

Mani Arora, Anil Kumar

Abstract


ABSTRACT

The purpose of this paper is to study the concept of Merger/Acquisition in detail by taking examples of some companies. The objective is to find out the major issues associated with pre and post merging situations with special emphasis on the human aspect. Merger/Acquisition is a phenomenon which is easy to think but hard to implement. Three phases of mergers – pre merger, transition phase and the post merger phase have its own advantages as well as difficulties, if handled with proper care synergies can be withdrawn but a little mistake can spoil the whole transition. Both management and employees have to work hard at their own level to make it a successful one because man is the major factor during the whole deal. Post merger transition phase is the most difficult one as in any organization whether large or small cultural clashes exist which may turn up a merger into the failure. Merger/Acquisition is a process which is very essential nowadays for the growth and survival of the business. Companies are acquiring more and more firms in order to expand their business and with lots of reasons which are discussed here. If any company is not adopting this way either they will not grow or will be acquired by the other major big firm.

 

Although the present system which is adopted by the companies for takeover can’t be taken as the appropriate one because the major reason behind this is of synergies but still more and more companies are merging with one another as there is a flow of merger or acquisition in the present era. When companies merge or make a plan for acquisition the only factor in their mind is growth or expansion or synergies. People factor is totally ignored. Either they are not involved anywhere or if involved then at very lower level.

 


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ISSN : 2251-1555