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Mergers And Acquisitions Essay

1861 words - 8 pages

Mergers and Acquisitions
Key Elements to Success

In a competitive market, businesses are constantly undergoing changes to remain profitable, flexible, and efficient. As a result of adapting to gain and/or maintain a dominant market position, businesses often look into mergers and acquisitions. Mergers and acquisitions are a corporate strategy where two or more businesses become one business that’s incredibly larger. Mergers and acquisitions involve buying, selling, combining, or dividing businesses in the same location or a new central location. They are becoming very popular because they are a way to strengthen and maintain a business’s position in their respective market place. ...view middle of the document...

(Schuler and Jackson 2001)

Communication is the most important part of the organization’s success at any time but especially during such a progression or enlargement as extreme as a merger or acquisition. During such a complex process, it is crucial to keep the lines of communication open no matter how hard or difficult it may seem because with two sets of employees, the challenges will be endless for a while. Negotiations will no doubt take place so it is important to be attentive to how people feel and this will in turn create a desirable company culture for the combined or new company. There will definitely be tensions among the employees, management, and senior management at the beginning because there is so much at stake and everyone will be inquiring about the process and at each step will be a set of new questions. Sometimes there may be very little new information but it is still important to communicate that also so there will not be a communication void so there will be no unnecessary worry and stress.
However, there may be challenges if the two companies have different communication styles because there will have to be a strategy to bring the possible two communication styles of the new companies together; but it will no doubt prove to be essential for the future success of the company. Finding one voice to get the communication flowing can be a lengthy process as well. Although, there will be more possible issues with communicating because there is only so much information that you can share with employees especially when it comes to the specifics of the integration. Tensions will become high and authority may become challenged. The best advice would be to capitalize on any meaningful bits of information that will provide the employees a level of reassurance and easiness to keep communication issues at a minimum. Any new information that comes available that does not jeopardize the internal strategies of the company or provide any risk to the company has to be shared. (Harrison 2013) It’s kind of like the old saying, “happy wife, happy life” in terms of “satisfied employee, successful organization”. It may not rhyme but it is true!
The consolidation and changes will prove to be difficult but they can be managed effectively. The focus has to be on the integration at all times because once again, it is a daunting task. Simply coming into agreement on the terms of the consolidation can be an exhausting obstacle to overcome especially if there is resistance because of the consolidation. The most challenging obstacles have to be identified early on and documenting the challenges and possible solutions can be very helpful. It is important to never forget the value of the merger or acquisition. Each HR manager has to be productive and proactive in assisting to make the transition as smooth as it can be because the knowledge of the company whether good or bad can be as asset. (Schuler and Jackson 2001)
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