REALISTIC MERGER AND ACQUISITION

Analyzing the Effects of a Realistic Merger and Acquisition on the Attitude and Behaviour of Employees in India

ABSTRACT

The purpose of this paper is to enlighten and explore the impact of realistic mergers and acquisitions in India on the employees that are working in the organizations in which the mergers and acquisitions take place. The core objective of the paper is to analyze the impact of mergers and acquisitions on the employees of Indian firms. Moreover, the second aim covered by the paper is to examine the influence of mergers and acquisitions on the practices adapted by the firms. The paper will analyze the situation of realistic mergers and acquisitions in India. In addition, the paper will gather primary information and analyze it statistically in order to conclude the study with valid results.

TABLE OF CONTENTS

ABSTRACTii

INTRODUCTION4

Background of the Study5

Purpose of the Study6

Problem Statement7

Research Questions8

Research Aim and Objectives8

Study Variables9

LITERATURE REVIEW11

Introduction to Mergers and Acquisition11

Mergers and Acquisitions in India13

Employee Behaviours after Mergers and Acquisitions in India15

Effects by Company to Motivate Employees after Merger and Acquisition16

Employee Difficulties in the Company after Merger and Acquisition19

RESEARCH METHODOLOGY21

Research Design21

Sampling21

Data Collection Process22

Research Instrument22

Data Analysis Technique22

Sample Size22

RESULTS23

DISCUSSION10

CONCLUSION13

REFERENCES15

INTRODUCTION

Mergers and acquisitions enable companies to pool assets for creation of value. In order to gain more control and increase the value for business, mergers and acquisitions require solidifying the activities in a given industry. Success of M&A depends on how well a company consolidates the operations in the market. Tactical fit concern of M&A is to seek profit in the short term, to acquire a company with the objective of increasing its value and then selling it at a higher price. The common factor in both cases is the stimulus that adds value to the acquired company. In M&A transactions, management of an acquiring company is driven by a desire to manage more and more companies to gain efficiency.

M&A leads to collaboration or sharing of experience that enable to achieve efficiency gains, or better utilization of company assets by the acquiring or merging company of underutilized assets. Other reasons include making the company more profitable by change in management. However, arrogance and power seem to dominate few mergers and acquisition that turn the action into a financial disaster. Successful mergers and acquisitions are dependent on the strategic thinking of senior management and how well synergy has been increased in comparison to the premium paid (Chase, Burns, 53-63).

The mergers and acquisitions activity in India has followed an evolutionary cyclical behaviour of stock markets during the last decade. Compare to potential synergy escalation, possibilities of failure are also high due to M&A. Main factors in this context contribute to the role of management and decision making based on behaviour. Overconfidence of CEOs in the potential significance of M&A results in creating financial instability for the company due to short-sighted strategic planning.

It is not possible to determine all the factors that drive the success and failure of mergers and acquisitions because each case is unique. Therefore, this research aims at highlighting the role ...