Mergers and Acquisitions | Change Management

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MERGERS AND ACQUISITIONS

REASON BEHIND FAILURES OF M&A 1
Executive Summary
Mergers and acquisitions are performed with the main aim of expanding business operations
within the industry. To ensure the success of the organisation management of the organisation
is required to evaluate the environmental factors that may influence the activities within the
business organisation. Among the environmental factors, the cultural differences among the
business organisations are considered as a major factor that leads towards the failure of
M&As. The management is required to focus upon developing an effective process through
which change can be implemented within the organisation after M&A.
Developing such a planned process will help the management in managing the activities
within the organisation and ensure the success of the business in long-run. The process starts
with analysing the need for implementing change within the organisation, then engaging
employees within the change process as the human resource of the organisation influence the
success or failure of the planned process within the organisation. therefore, it is required that
the management focuses on the needs and requirements of the employees within the
organisation. The management is required to focus on the development of a team that would
effectively analyse the cultural differences and based on such analysis the management is
required to develop business policies that would result in mitigating the impact of the cultural
differences within the organisation.

REASON BEHIND FAILURES OF M&A 2
Table of Contents
Introduction................................................................................................................................3
Mergers and Acquisitions..........................................................................................................3
Change Management within M&A............................................................................................7
Developing an effective change management plan for M&As..............................................9
Conclusion................................................................................................................................11
Recommendations....................................................................................................................12
References................................................................................................................................13

REASON BEHIND FAILURES OF M&A 3
Introduction
Mergers and acquisitions are the business transactions under which two or more business
consolidates to form a single entity, operating under a single brand name and having common
business goals and objectives. A merger is legal aspect under which two organisations
willingly agree to consolidate their business activities and to work cooperatively to achieve
success within the industry, whereas in acquisition a bigger or financially strong company
within the industry acquire a smaller company with a motive to expand business operations or
to increase market share of the organisation (Hayes, 2019). The success or the failure of the
M&As depends upon various internal as well as external factors of the business environment.
The report is focused on analysing the reasons that led to the failure of M&As within the
industry and developing plans and policies through which the effectiveness of the
organisation can be ensured. Apart from the internal and external factors, the failure of the
M&A is also dependent on the cultural factors of the organisation. Therefore, the
management of the organisation is required to focus on different aspects to ensure the success
of the organisation. The report effectively analyses the key issues that the management is
required to focus upon and the necessary steps involved in the development of the change
management plan within the organisation, through which the organisation will be able to
ensure the implementation of change within the organisation.
Mergers and Acquisitions
Mergers and acquisitions can be defined as a concept under which two companies combine to
form a single entity. Mergers are the consolidation of the two organisations willingly to form
a single entity, whereas the Acquisition is the takeover of one organisation by the other.
Mergers and acquisitions are the major aspects of dealing in the corporate world. The main