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Merging Two Companies Into One Term Paper

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…

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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
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