MERGERS AND ACQUISITIONS

Mergers and Acquisitions

Table of Contents

CHAPTER 1: INTRODUCTION3

1.1 Background3

1.2 Problem Statement4

1.3Research Questions5

1.4 Research aim and objectives6

1.5 Mergers and Acquisitions in the Indian Context7

1.6 What are Mergers and Acquisitions?7

1.7 Indian companies are among the most active in M & A8

1.8 Mergers, Acquisitions and Employees9

CHAPTER 1: INTRODUCTION

1.1 Background

Firms across the world have employed the strategy of mergers and acquisitions in order to protect and fortify their market. They perceive mergers and acquisitions as efficient and fast means to further strategic goals and to attain global presence. In the case, of technology-based sectors of industry such as aerospace, IT and pharmaceutical; mergers and acquisitions have become important as the demands of customers are continuously changing due to the competitive environment; therefore, organization choose mergers and acquisition for minimizing the cost and for the better R&D for the purpose of achieving more efficient operations. Mergers and acquisitions are becoming a wide-spread phenomenon in recent times by firms, to sustain and protect their market position. “Most organizations are increasing employing them as it is the fastest way to gain recognition in the global forum and reach out to a wider client base without which it is virtually impossible to grow” (Nayyar, 2008, pp. 111-131). While, merger and acquisitions happens it is essential to ensure that value the organization focuses to add is realized.

While deliberating on the success of mergers and acquisitions state “Success in the first area, meeting a strategic objective, depends on mutual synergy, the buyer and seller have to transfer technology and knowhow across company lines” (Frederick, 2008, pp. 8-47). This means carefully knitting operations together and keeping talented people loyal and motivated. Loyalty and motivation required by the organization so that the objectives of the organization can be fulfilled. Moreover, the case of merger and acquisition, it is important for organizations to keep the morale of employees high, as it key for organization's success.

Talent retention in organizations is a key element of competitiveness but is an often overlooked part of strategy and in particular technology strategy. “Mergers and acquisitions have both advantages and disadvantages” (Vinoj, 2004, pp. 365-386). Scholars, according have found out that the failures of mergers and acquisitions include paying the wrong price, purchasing items for the wrong reason, identifying wrong partner and not integrating technology in a timely manner. Other people argue that mergers and acquisitions condemned by issues such as pervasiveness what do you mean here? As well as depth issues associated with human factors. One of the major disadvantages caused about by mergers and acquisitions is the departure of key employees. This is because employees are an integral part and resource that companies use to achieve their goals. Some employees have unique skills and talents that are the reason for the success of the organizations. Hence, when such employees leave the organization, it takes time to replace them and for the organization to reclaim its initial position in the market. Other negative consequences of mergers and acquisitions include reduced job satisfaction, which is important ...