What are Best Practices for Retaining Employees During Mergers and Acquisitions?

The purpose of this report is to guide decision makers at this company, by offering the most recent theories and practices regarding talent retention programs. Recently mergers and acquisitions have become a major part of global business. During the M&A, it is important to manage the organizational and human resource issues. Our team focused on gathering real business cases. Then we highlight some suggestions from the best practices to create successful M&A. It is our intent that the research findings in this report will help to enlighten and inform the company’s leaders to guide the effective human management program centered on key talent, ultimately leading to organizational success

Resource-based theory and mergers & acquisitions success

Mergers & acquisitions (M&A) are most popular external growth strategies. While the number of M&A has been increasing during the past decades, on average, only the shareholders of target firms gain value during the acquisitions process, while acquirers do not receive abnormal positive returns. This paper analyses the impact of strategically valuable resources on the success of M&A decisions. We test complementary resource-based hypotheses regarding the value of M&A for the shareholders of both transaction partners. Our sample consists of transactions in the pharmaceutical and biotechnological industry. The results of our study show that the shareholders of both transaction partners will gain above average positive returns only when the acquirer and the target own and combine strategically valuable resources and capabilities. --

Integration and Reorganisation of Industrial R&D: Deficits and Perspectives of Empirical Research

The combination of research and development units following a merger or an acquisition usually requires a broad and widespread integration project to ensure that a company?s innovative capabilities are carried forward into the future. Previous research has shown, however, that the combined companies tend to produce fewer innovations after the transaction than before. Based on a set of theoretical hypotheses, nine empirical studies are analysed with respect to their contribution to the research problem. The review shows substantial shortcomings in content and methodology which do not allow the hypotheses to be evaluated adequately. --Post Merger Integration,Reorganisation,Research and Development,Literature Review

The influence of organizational and information systems factors on the effectiveness of post-merger technology integration

This dissertation explores how ten specific organizational and information systems factors influence post-merger IS integration success, and the role that degree of IS integration plays in moderating the influence these factors may have on IS integration success. Data were gathered, using a self-administered survey instrument, from senior IS executives at firms that experienced a U.S. public merger greater than $25 million between 2004 and 2007. Support is found for the study\u27s Conceptual Model, indicating that all ten factors in unison influence post-merger IS integration success. The data support the hypotheses that quality of merger planning, quality of communication of merger activities to IS, quality of IS integration planning, degree of end-user involvement in IS integration activities, and quality of technical support to users during the IS integration each have a significant influence on post-merger IS integration success. The data also support the moderating effect of degree of IS integration on the relationship between post-merger IS integration success and executive (non-IS) management support. In a supplemental path model analysis, a complex relationship is hypothesized to exist between the factors and IS Capability and IS Performance, the two IS integration success measures, As a result, four of the five remaining hypotheses are indirectly supported. This research expands the body of knowledge that identifies sources of IS integration performance, thus helping to explain sources of overall merger performance

Organizational and Informational System Factors in Post-Merger Technology Integration

Many corporate mergers fail to achieve their intended objectives. The literature indicates that slow post-merger integrations are partly responsible for such failure and highlights that a successful post-merger integration is essential to a successful merger. Recognizing the fact that information systems (IS) integration is important for effective merger performance and that few IS and merger research has addressed this area, the objective of this article is to focus on organizational and information systems factors that affect post-merger IS integration performance with the eventual aim of identifying ways in which to manage the significant factors post-merger. This research is timely and relevant and will contribute to the body of research that facilitates the understanding and management of merger effectiveness and its associated processes

Mergers and Acquisitions Between Mutual Banks in Italy :An analysis of the effects on performance and productive efficiency

The paper is aimed at testing the hypothesis that the M&A wave over the past ten years has increased the level of efficiency of co-operative credit banks (CCBs), both in terms of overall performance and productive efficiency. The logical development is hinged on two steps: 1) an explorative analysis which is based on the observation of balance sheet ratios by quantiles, 2) a DEA application for estimating productive efficiency scores. The analysis refers to 94 CCBs which have been involved in M&As over the period 1995-1998 and is carried out on both merged and non-merged banks, either before concentration or in the subsequent years.

A Framework for Understanding Post-Merger Information Systems Integration

This paper develops a theoretical framework for the integration of information systems (IS) after a merger or an acquisition. The framework integrates three perspectives: a structuralist, an individualist and an interactive process perspective to analyse and understand such integrations. The framework is applied to a longitudinal case study of a manufacturing company that grew through an acquisition. The management decided to integrate the production control IS via tailoring a new system that blends together features of existing IS. The application of the framework in the case study confirms several known impediments to IS integrations. It also identifies a number of new inhibitors as well as known and new facilitators that can bring post-merger IS integration to a success. Our findings provide relevant insights to researching and managing post-merger IS integrations. They emphasize that researchers and managers of post-merger IS integration should pay particular attention to the IS and organizational merger contexts; the need to build relationships and collaboration between the merging parties; power struggles and, perhaps most importantly, understanding and treating post-merger IS integration as a complex, messy and evolutionary process