Management of Mergers and Acquisitions: A Comprehensive Analysis

This report examines the management of mergers and acquisitions (M&A), highlighting both the opportunities for business expansion and the challenges related to organizational and cultural integration. The analysis explores how companies use M&A to grow, focusing on the importance of proper planning to avoid issues such as employee turnover and cultural clashes. The report references several studies that discuss the role of employee retention, corporate governance, and the impact of cultural similarity in the success of M&A. It emphasizes the need for effective management strategies to ensure employees feel connected to the company post-merger, fostering loyalty and contributing to overall business success. The research concludes that successful M&A requires careful consideration of employee relations, organizational structure, and cultural integration to achieve sustainable growth.

Running head: MANAGEMENT
Management of M&A
Name of the student
Name of the university
Author Note:

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Problem statement:
Mergers and acquisitions are often utilized as a means for a company to seize the
opportunity for growth. The tailwinds of such mergers can seem promising in theory, but without
planning thoroughly could lead to a plethora of issues ensued from organizational and cultural
structure. In the case of RPZ, if they will need to think of a creative way to train the new
employees while having a good work environment.
Analysis:
Business organisations today often adopt acquisition and merger strategy to expand their
market sizes as well as strengthen their competitive advantages. However, the strategies can fail
without proper planning. The research would explore both the aspects of acquisitions and
mergers. The secondary resources would be of great importance to the research since they
would enable accumulation of large body of data which would in turn provide substance to the
paper. Pelov and Nguyen (2018) while exploring the importance of acquisition and mergers
point out that firms view acquisitions and mergers as investment options. The larger business
organisations usually tend to acquire smaller or distressed firms. They as a result incur lower
expenses in order to acquire these smaller and/or distressed firms. The authors then go on to
mention that these acquisitions often attract post-transaction risks which if not properly
management may lead to organisational and cultural issues between the mother firm and the
acquired subsidiaries. Degbey et al. (2020) strengthens the argument by pointing out to one of
the most crucial area which decides the level of success of acquisition and mergers- employees.
The authors mention that business organisations in order to retain employees and ensure
productivity from them in the long run have to ensure that the latter feel psychologically related
to the company even post A&M. The authors then go on mention that when employees of the

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subsidiary companies fail to feel related to the respective mother companies, they feel insecure
and ultimately resign in large numbers. This suddenly surges the employee turnover rate in the
mother firm, thus weakening its organisational structure from within. Sarala et al. (2016)
contradict the opinion of the previous authors partially by pointing out that, instead of becoming
weak culture wise and organisational strength wise, owing to high employee turnover psot
M&A, companies can achieve stronger operations between successfully managing employees of
their own as well as employees of the subsidiaries acquired. The management of the mother firm
can establish proper corporate governance on their own employees and employees of their
subsidiaries. This would ensure that both the employee groups would complement each other’s
skills and knowledge. Karimi (2019) supports Sarala et al. (2016). He points out that owing
higher level of the coordination with the employees of the mother companies and participation in
the operations of the mother companies, the employees of the subsidiaries concerned, feel more
culturally related to the mother companies. They as a result remain loyal and continue serving.
Bereskin et al. (2018) in support of M&A, point put that mergers and acquisitions enable firms to
acquire subsidiaries in order to gain access to the resource of the latter. Thus, M&A increase the
resource base of business organisations and contribute to their growth.
The analysis above brings into the light that mergers and acquisitions attribute both
opportunities and challenges before the firms. Successful management of M&A leads to business
expansion while on the other hand, failed management leads to weakening of the organisational
strength of the companies. The problem statement mentioned above introduces both the
opportunities and the challenges. Thus, it require no change.

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References:
Bereskin, F., Byun, S. K., Officer, M. S., & Oh, J. M. (2018). The effect of cultural similarity on
mergers and acquisitions: Evidence from corporate social responsibility. Journal of
financial and quantitative analysis, 53(5), 1995-2039.
Degbey, W. Y., Rodgers, P., Kromah, M. D., & Weber, Y. (2020). The impact of psychological
ownership on employee retention in mergers and acquisitions. Human Resource
Management Review, 100745.
Karimi, K. L. (2019). Effects of Business Mergers on Employee Loyalty in Selected Companies
Listed at the Nairobi Securities Exchange. Global Journal of Management And Business
Research.
Pelov, S., & Nguyen, H. H. (2018). Distressed Mergers and Acquisitions.
Sarala, R. M., Junni, P., Cooper, C. L., & Tarba, S. Y. (2016). A sociocultural perspective on
knowledge transfer in mergers and acquisitions. Journal of management, 42(5), 1230-
1249.