Merging Two Companies Into One Term Paper

PAGES
3
WORDS
1091
Cite

Merger & Acquisition The author of this report has been asked to do an assessment that involves the author's company acquiring a major competitor. The person piloting the acquisition has just asked the author to do a few things. Those things include an overview of the issues that would exist in merging the two organizational structures, the compensation systems for the two companies and so forth. The author is asked to recommend the tools to help manage things like stress resulting from the merger, the sharing of information internally about the merger and the merger process itself. There is also the concept of evaluating how the merger is going in general. The reasoning and justification for each step will be explained along the way. While merging the operations and cultures of two businesses can be very difficult, it is possible to do well if done diligently and carefully.

Analysis

One major hurdle when it comes to merging two companies is the fact that the company that is being merged will most likely be on edge. It could very well be that the company being bought was just a hostile takeover or a strategic acquisition. The acquired company may very well be doing fine in the grand scheme of things. However, many companies that are being acquired are not doing so well and sometimes they are actively looking for acquiring companies to snap them up. Indeed, this can lead to a lot of stress, rumors and other issues within the organization...

...

To be sure, there is going to be a lot of redundancy and other issues to deal with when a company is being bought but whatever can be done or said to ease the minds of the people in the company being acquired should be done. They should be assured that there will be a great amount of transparency and communication about the process, what is being done and why and the over timelines that will be adhered to as the process goes along. Anyone supplanted by the merger should be given the chance to shift to another role unless there is a reason why that is not prudent or wise (AJE, 2016).
Another hurdle that would have to be dealt with is merging the structures and departments of the two businesses. Obviously, the structure of the buying business will probably be the only (or at least the main) guide as to how the new and combined company will look. However, it is possible that elements from the acquiring company will be prominent as well. It really depends on what is best for the combined company and what is required given the elements of the two companies being combined. In any event, the single combined business will almost surely look more like the buying company rather than the acquired company when all is said and done. Also, the transition from the separated companies to the combined companies needs to be done in a neat an orderly way so as to not upset the proverbial apple cart. Decisions will have to be made, however, when it…

Sources Used in Documents:

References

AJE. (2016). Mergers & Acquisitions: How they May Impact You -- Americasjobexchange.com. Americasjobexchange.com. Retrieved 15 March 2016, from http://www.americasjobexchange.com/career-advice/impact-of-mergers-and-acquisitions

BLS. (2016). Overview of BLS Statistics by Industry. Bls.gov. Retrieved 15 March 2016, from http://www.bls.gov/bls/industry.htm

Stanford. (2016). Glenn Carroll: How Do You Successfully Merge Two Corporate Cultures?. Stanford Business. Retrieved 15 March 2016, from https://www.gsb.stanford.edu/insights/glenn-carroll-how-do-you-successfully-merge-two-corporate-cultures


Cite this Document:

"Merging Two Companies Into One" (2016, March 15) Retrieved April 29, 2024, from
https://www.paperdue.com/essay/merging-two-companies-into-one-2159397

"Merging Two Companies Into One" 15 March 2016. Web.29 April. 2024. <
https://www.paperdue.com/essay/merging-two-companies-into-one-2159397>

"Merging Two Companies Into One", 15 March 2016, Accessed.29 April. 2024,
https://www.paperdue.com/essay/merging-two-companies-into-one-2159397

Related Documents

Merge the acquired company into your company. The result of this strategy will be one company containing the elements of both companies. What are the pros and cons of this implementation strategy? How will you know if the strategy is working? The risks and downsides of mergers are well-known -- it is often said that mergers make it easy to predict the future, because they almost invariably fail. In fact, two-thirds

businesses different? Sun Trust and U.S. Bancorp have a number of characteristics and features in common with each other. The most notable is: both are large financial holding companies which are providing a variety of products / services. To include: credit cards, mortgages, consumer / business loans, investment banking and advisory services. ("U.S. Bancorp," 2012) ("Sun Trust," 2012) The way they are different is U.S. Bancorp has $383 billion in assets

Merging 401 K. Plan
PAGES 3 WORDS 747

Merging 401(k) Plan The issue of vested and unvested employees is rather complicated. We need to analyze the facts and create several other groups, according to the 'vesting' intervals they find themselves in. We need to address the issue of the vested employees at Claricom who have finished their 4-year period of vesting with Claricom, because, if the Staples schedule is adopted, we will need to consider what will happen with the

Merging Current Retirement Plans at Company Y: Memo to CEO In the wake of the recent merger, employees of Company Y are understandably anxious about the decision to create a single, unified retirement benefits plan for all employees. One segment of the company has a defined contribution plan, in which employees contribute to the plan with a portion of their salary, which is then matched by the company. The employees with

announcement merger companies Vela Bahri. *Size companies *Reasons merger * process merger ( time ) * happened stock prices shareholders reaction *After completed merger results merger? status change? *Roles top manager merger. Vela Bahri Merger Information from the announcement of the merger The announcement of this important merger was made on June 27, 2012 by Saudi Aramco and the National Shipping Company of Saudi Arabia. The announcement revealed the fact that the

Problem Solving Case Study Merging Information Technology and Cultures at Compaq-Digital (B): Becoming a Single Firm The many challenges and opportunities evident for Compaq and Digital Equipment Corporation (DEC) illustrated in the case study Merging Information Technology and Cultures at Compaq-Digital (B): Becoming a Single Firm are analyzed and evaluated from a strategic perspective in this analysis. Both companies have drastically different cultures, which made the challenges, opportunities and threats of the merger