Corporate Risks - Mergers & Acquisitions

Every time a Corporate Raider attempts a hostile takeover in the organisation, we have to be aware of interplay within the quicksilver atmosphere:

 

Players:

 

1. White-colored-colored-colored Soldier

 

2. Black Soldier

 

3. Grey Soldier

 

4. Yellow Soldier

 

Further every time a Corporate Raider attempts Eco-friendly mailing or hostile takeover threat still persists, are we able to have selections for example:

 

1. Moat

 

2. Golden Parachute

 

3. People Pill

 

4. Poison Pill

 

5. Lobster Trap

 

6. Killer Bees

 

7. Suicide Pill

 

Mergers & Acquisitions presents Corporate Risks which should be mitigated.

 

Success of merger / acquisition depends how you have really prepared at:

 

1. Merger stage

 

2. Publish Merger stage

 

Merger stage:

 

Here compatibility issues have to be addressed under:

 

1. Courtship phase

 

1. Evaluation and Settlement phase

 

If we are searching at compatibility issues at during Courtship phase, am i examined compatibility relating to the vision and objectives, am i had the chance to construct and reinforce business and personal relationships.

 

Once we choose a mutual understanding, we've compatibility, we share vision and objectives that folks may choose to visit Evaluation phase and Settlement stage where we have to undertake research and appraise the cost/advantage of the merger/acquisition besides understanding the regulatory clearances needed for your new project.

 

When the Merger/ Acquisition has received place, we might like to check out Issues which have to be addressed under:

 

1. Immediate Transition phase

 

1. Transition phase

 

Immediately after the merger / acquisition, Issues for example New appointments are crucial, set of Redundancy bulletins are crucial, Restructuring of many departments have to be completed to really result in the organisation an agile corporation and Divestment should be thought about.

 

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In Transition phase, we have to Tweak the organisation further allowing the organisation to stay lean and agile. Further re-structuring and job transfer have to be done to obtain the right fit. We're not able to ignore Mix-Cultural variations exactly what are Enemy of countless a mergers.

 

Why mergers really fail is because of a clash of corporate cultures:

 

Am i addressed the cultural incompatibilities

 

Was cultural research done properly

 

Did we undertake cultural audit

 

Did we create Understanding maps

 

When we do not predict the dissonance that will arise in Corporate Matchmaking due to the dissonance in organisation structures, problems will arise. Dissonance in Beliefs, Values, Norms and Behavior may be the primary reason mergers fail.

 

Further, were similarities and variations assessed, do organisations have mutual respect for one another, would they acknowledge professional and individual competence, business capacity etc. What is the dissonance between hopes & expectations, vision statements, mission statements etc.,

 

What synergies exist

 

Maybe there is rely on discussing difficult issues and handling conflict?

 

Maybe there is commitment by parties to become effective, 99% mergers fail because whatever you did was financial research. Perhaps you have examined the dissonance between vision and proper goals and objectives of both companies.