Challenges that a company faces at the event of merger and acquisition
- A brief history of mergers and acquisitions
- Significant mergers and acquisitions in history
- Legal perspective
- Types of mergers
- Economic perspective
- Reasons for merger and acquisitions
- Essential strategies for achieving successful merger and acquisition
- Stages of M and A's
- Seven essential steps of merger and acquisition excellence
- Guidelines for the employees for surviving a merger or acquisition
Globally most of the companies started a new tendency of either combining firms or buying of one company by the other for obtaining additional benefits and technology. This is referred to as Merger and Acquisition. Their history helps to understand the evolution of the M&A's in the world.
In USA, mergers and acquisitions started in 20th century. After which M&A's continued to occur in cycle and these cycles of M&A's took place in USA in the year 1929, in the latter half of 1960's and in the first half of 1980's.. A Cycle refers to the period in which the maximum number of mergers and acquisitions took place.
The most significant mergers in the US occurred in the last half of 1990's and the idea behind this was that, the stock market was quite strong in the US in during this period. This strong market supported the high incidence of mergers and acquisitions. The M&A'S of this period involved big brands and huge amount of dollars.
[...] DePamphilis ) REASONS FOR MAKING MERGERS AND ACQUISITIONS: As many of the mergers and acquisitions boosted the performance of a company and addressed the well-being of its shareholders .There are reasons for making an acquisition For acquiring complementary products to broaden the line 2. For acquiring new markets 3. For acquiring benefit from economies of scale 4. For acquiring technology to replace the currently used one (Source: Mergers & Acquisitions , Vadim Kotelnikov ) 5. For improving innovation 6. For improving profitability 7. [...]
[...] Seven Essential Steps of Merger and Acquisition Excellence are: Pre Merger: Cultural DNA Due Diligence: Collaborating on an integration strategy Step Involvement and Engagement: Dreaming the dream of the future and Formulating New Identity formulation Step Shared Vision: Expanding the vision from mine to ours and giving it life Step Analysis: Evaluation f current reality with regard to strategy Step Action: Cascading the process by creating ownership in the process Step Implementation: Building and creating energy Step Maintenance: Focusing direction and energy of corporate New Identity Step Renewal: Re-evaluation and re-creation Finally, RepeatStep 1 ( Source: Sandy Weiner and Roberta Hill, sep/oct 2008 ) GUIDELINES FOR THE EMPLOYEES FOR SURVIVING A MERGER OR ACQUISITION: Merger and Acquisitions have their great impact on employees of the merged or acquired companies. [...]