holding differing opinions on value

.....uncommon for separate groups to hold differing opinions on value. However, it becomes a huge challenge when these opinions have no form of correlation with each other. An example is on the topic of the best valuation method to implement or even worse is when the future predictions are totally different from each other (Thuy Vu Nga & Kamolrat, 2007).

Example case:

Concerning the problems of the project team, two members who were questioned made clear their problems with the large volume of work which they had to finish in no time. Another team member talked up the problems of communication with the client, third party specialists, business partners and their employees. Once more, the issue of the true worth of the company was brought up. This time, it was specifically on the disparity between the worth of the enterprise calculated by the bank and the independent accountants with "the bank valuing the enterprise based on the market and the accountants valuing it based on theoretical methods like the DCF."

In most cases, the major function of the management sector charged with change during the process of integration is communication. This function could make change management seem a bit needless as communication is only focused on the verdict of other panels without having any effect on decisions on its own. Culture could be earmarked as a main obstacle of change management and in this case, its responsibility towards bringing about integration cannot be overemphasized (Miller & Fernandes, 2009).

Case Example:

This method, when applied on a just concluded merger of pharmaceutical companies, was about 40% more effective in identifying collaborations than an intensive and structured spreadsheet-based method. Normally, a day or two are taken aside for meetings aimed at identifying mechanisms for achieving collaboration objectives and then building these processes. The participating groups come up with suggestions on the best process for meeting these targets and then they evaluate the collected data to check whether the process is feasible. Lastly, they think of ways of improving the selected process. The aim of the meeting is to identify ingenious views and their problems with no attention paid to digits (Deutsch & West, 2010).

Merged conglomerates have the ability to consider more major cases in order to compare them, reapply their data to other cases or for publication. The ones who are yet to carry out any case studies can organize a pioneer case in order to understand the mechanism of case studies and the sort of exciting results it can give. After this initial case, other cases can be evaluated using similar processes to the other companies who have carried out several studies. The important fact is that carrying out studies on correlating cases will help build research collaboration more effectively compared to non-correlating cases of different occurrences. Successive case evaluations could start with an initial case publication, closely followed by an evaluation of two combined cases (Bengtsson & Larsson, 2012).

Case Example:

When Daaichi and Sankyo merged, the aim they passed across to the employees was that they wanted to increase their market share in the American pharmaceutical industry. After interviewing the employees, it was clear that they do not see this as a sufficient reason. They later came together to form a group with their aim being to "add to the balance of life." They carried out widespread advertisement, a public movement to discover and register important opinion personalities to their cause as well as services ranging from "balanced" work lunches for all workers to massages at their desks. The group grew and became very large that it started getting recognitions from major advertising companies (Miller & Fernandes, 2009).

References

Bengtsson, L., & Larsson, R. (2012). Researching Mergers & Acquisitions with the Case Study Method: Idiographic Understanding of Longitudinal Integration Processes. CSIR Electronic Working Paper Series.

Deutsch, C., & West, A. (2010). A new generation of M&A. McKinsey.

Miller, F., & Fernandes, E. (2009). Cultural issues in mergers and acquisitions. Deloitte Development LLC.

Thuy Vu Nga, H., & Kamolrat, L. (2007). Critical Success Factors in Merger & Acquisition Projects.

Question 2 - Key Elements of merger plan

1. Emphasis on Conventional Value Sources

In the middle of year 2009, a survey carried out by McKinsey which involved around 90 M&A specialists indicated a rising interest in mergers. Almost 50% of the surveyed specialists had a strong belief that the current business deals they are in charge of can only "rise in transaction worth" within the next few, say, three years. They were also sold on the idea of applying M&A in advancing their businesses and firming up their R&D resumes. Definitely, several of these acquisitions will follow the conventional value sources which are typical to current businesses; however, there is always the possibility that one of them could create an opening which brings about revolutionary value that are far greater than those derived from the normal integration methods. The successes experienced in M&A by McKinsey customers and this survey shows that a rise in the benefits from an acquisition caused by revolutionary value ranges from 30 -- 100% (Deutsch & West, 2010).

2. Organizing and applying Case References

Work on more cases in order to discover and outline case comparisons, various publication openings and reapplication of data from studied cases. Companies which haven't carried out any form of case studies initially can first carry out a model case in order to fully grasp the method of performing case studies and to also experience first-hand the kind of interesting results it can give. After this, the company-just like others who have previously carried out this process-could carry out several other successive cases. The important fact is that carrying out studies on correlating cases will help build research collaboration more effectively compared to non-correlating cases of different occurrences. Thus it is better to choose cases which are very similar to each other in order to identify new trends and connections between them. After this, then we expand the disparities identified between the considered cases in order to determine their boundaries. This process of identifying disparities and connections has been appreciated by M&A researchers due to its effectiveness in case study processing (Bengtsson & Larsson, 2012).

3. Quelling Insecurity via Communication

When mergers or acquisitions, both tasking processes, are to take place, it is important to keep a very effective communication channel open so as to quell all forms of insecurity on the part of the procured company. If the communication is not effective, adequate and coordinated, then false information, lower productivity and poor employee efficiency will be the order of the day. M&A are complicated and distinct processes which showcase organizational methods that add value and those that reduce it as well. Due to this, M&A should be accorded the effective and far-reaching method of surveys as well as the human-based sample events which helps one fully grasp its inherent processes (Bengtsson & Larsson, 2012).

References

Bengtsson, L., & Larsson, R. (2012). Researching Mergers & Acquisitions with the Case Study Method. Sweden: Center for Strategic Innovation Studies.

Deutsch, C., & West, A. (2010). A new generation of M&A. McKinsey.