What are 3 challenges for executing a merger or acquisition? List, explain, and provide 1 example...

What are 3 challenges for executing a merger or acquisition? List, explain, and provide 1 example (total).

Expert Solution

Challenges in executing M&A Deal

Hindrance to fair Competition: Sometimes post merger businesses tend to become so powerful that they are at a risk of destroying competition from small and marginal traders by commanding huge influence on purchase of raw material and supply chain. In these case decision is with individual country's laws to decide if this deal of merger should go through or not. If it negatively affects consumer & traders rights they make sure deal doesn't go through.

Workforce retention: Mergers may lead to considerable downsizing of workforce in order to implement more effective organizational structure. Employees might also feel scared of changes, management style, leadership or their own roles.Losing high level and influential executives can affect future of merged organisation. Challenge lies in optimization of structure so that best talents stay with org.

Cultural difference/barriers: Today world is a global village, business operates in the same manner also. Sometimes two organisation are based out of different countries merger of which can act as a hindrance in smooth transition. Challenge lies in better screening and counselling of executives at all levels

Example

Recently Dell merged its international services operations with NTT Data globally. Dell was a American org with its own work culture, and NTT Data with its own Japanese set of values. They were poles apart in nature. It was really difficult for the Dell workforce to transition in Japanese work style of working for hours and hours together, because of which labor turnover of merged organisation touched almost 20-30 percent in first 3-4 months at the higher level also. HR team coming to rescue initiated trainings and counselling putting a break to that quick transfers and notices.

jeff jeffy answered 1 year ago

Look for an example of a recent merger/acquisition. Explain the acquisition terms. Identify who was the...

Look for an example of a recent merger/acquisition. Explain the acquisition terms. Identify who was the acquiring company and what type of merger it was. Discuss some of the advantages/challenges of the merger.

explain merger or acquisition consolidation, which is its characteristics, and an example. stock for stock acquisition,which...

explain merger or acquisition consolidation, which is its characteristics, and an example. stock for stock acquisition,which are its characteristics and an example Assets for stock acquisition, which are its characteristics and an example.

List at least three weaknesses of the Merger and Acquisition analysis.

How merger and acquisition enhance the value of company. please provide 6 idea and explain the...

How merger and acquisition enhance the value of company. please provide 6 idea and explain the idea that you provide (25m)

Please answer and give an example if appropriate. How difficult is it for merger and acquisition...

Please answer and give an example if appropriate. How difficult is it for merger and acquisition strategies to create value and which firms benefit the most from M & A activity?

What is a merger? How does a merger differ from other forms of acquisition? From the...

What is a merger? How does a merger differ from other forms of acquisition? From the standpoint of stockholder’s wealth, which one of the reasons may be a justifiable reason for merger or acquisition? Explain.

Merger and Acquisition ch 19 Finance How can legislation and regulation serve as merger defense? Explain...

Merger and Acquisition ch 19 Finance How can legislation and regulation serve as merger defense? Explain the difference between flip-in and flip-over poison pills?

Subject Merger and Acquisition 1. What do research studies say about the premiums paid and the...

Subject Merger and Acquisition 1. What do research studies say about the premiums paid and the event returns from international M&A activities? What are the reasons provided in the literature behind the premiums paid?

1. What are the three inventory accounts? List them, describe them and provide an example of...

1. What are the three inventory accounts? List them, describe them and provide an example of the types of costs included in each inventory account. 2. What is the relevant range? Why would cost behaviour changes outside the relevant range? In your answer, describe an example (or examples) in your response. 3. Compare and contrast committed fixed costs and discretionary fixed costs. in your answer, provide at least one example of each type of cost and explain why it is...

1-how i can know what the financial reporting implications of the merger/acquisition that a company follow...

1-how i can know what the financial reporting implications of the merger/acquisition that a company follow (from where i can get this information)? for example : what the implications of the merger/acquisition that Shire PLC follow to merg with Baxalta ? 2-what are direct acquisition cost (how i can identify them)?List the components of the direct acquisition costs NOTE :all these question related to the merger of Shire and Baxalta

Question