Mergers and Acquisitions: Conflicting Values and Integration Process

Running head: MERGERS AND ACQUISITIONS
Mergers and Acquisitions
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Word Count: 2781 words

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MERGERS AND ACQUISITIONS
Executive Summary:
The case study shows that establishment of strategic fit is of utmost importance to attribute
acquisitions and mergers with the desired results, capital appreciation and increased market
competitiveness. However, the competition to gain power and influence between the top
managers of the merging companies inhibit establishment of the strategic. The struggle erodes
the organisational culture, thus creating an ambience of insecurity and tension. It can pointed out
that the case study several times mentions employees of both DeWaal and BioHealth, due to
cultural shock they were suffering from. It can also be pointed out that the lobbying activities
which Steve and Kasper of BioHealth and DeWaal embarked upon were unethical and would
lead to failure of the new company DeWaalBioHealth..

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MERGERS AND ACQUISITIONS
Table of Contents
Executive Summary:....................................................................................................................1
Introduction:................................................................................................................................2
Part 1. Conflicting values:...........................................................................................................2
Financial value:................................................................................................................................3
Value of leadership and top managers:........................................................................................4
Part 2. Process of integration between DeWaal and BioHealth:.....................................................5
Theory of strategic fit:.................................................................................................................5
Part 3. Recommended conflicting resolution:.................................................................................8
Unfreeze:......................................................................................................................................8
Change Implementation:..............................................................................................................9
Refreeze:....................................................................................................................................10
Part 4. Recommended process before senior executives and HRs:...............................................10
Conclusion:....................................................................................................................................11
References:....................................................................................................................................12

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MERGERS AND ACQUISITIONS
Introduction:
Mergers and acquisitions are one of the most formidable strategies used by multinational
companies to expand their businesses. This is because both the strategies leads to appreciation of
asset values for the companies involved. Increased financial power and asset value appreciation
act as security for investors and customers. This leads to attracting more capital and revenue
respectively. These two strategies on the flipside initiate a conflict of power and influence
between the top managers of the participating companies, especially in case of mergers where
both the companies integrate their resources to form a new company. The conflict for power
exists in case of a merger since unlike an acquisition, none of the companies become subsidiary
to one other, thus retaining their positions. This tussle between top executives for power and
influence would form the crux of the paper. The aim of the paper would to explore this
competition for power which takes places between the apex managers and their allies of the
companies participating in the merger. An article published in the Harvard Business Review
titled ‘Who Goes, Who Stays?’ depicting struggle for power between top managers of two
arbitrary companies namely, DeWaal and BioHealth. The theories applied in the study are
strategic fit, stakeholder theory and Lewin’s change management models.
Part 1. Conflicting values:
The conflicting values of the DeWaal Pharmaceuticals and BioHealth Labs, were at stake
due to the decision of the two companies to merge into one organisation namely, DeWaal
BioHealth. The conflict of the culture between the two companies arose because they belonged
to the different markers with diverse corporate culture. DeWaal was based in Netherlands while
BioHealth was based in New York City, the United States of America (Hbr.org. 2019). The