Anatomy of a merger
Anatomy of a merger: behavior of organizational factors and processes throughout the pre- duringpost-stages (part 1)
Steven H. Appelbaum
Concordia University, Montreal, Quebec, Canada
Joy Gandell
Concordia University, Montreal, Quebec, Canada
Harry Yortis
Hydro-Quebec, Montreal, Quebec, Canada
Shay Proper
Montreal Stock Exchange, Montreal, Quebec, Canada
Francois Jobin
Kruger, Inc., Trois-Rivie
Âres, Quebec, Canada
Keywords
Mergers and acquisitions,
Organizational behaviour, Process efficiency, Managers
Abstract
The multiple organizational factors impacting on a merger as well as those processes being impacted on throughout the merger process will be examined. First, the issue of constant and lucid communication and its importance throughout the merger and acquisition (M&A) process will be addressed. Second, an examination of the current corporate culture and its effects on employees when two companies merge is analyzed, while illuminating the realities of the new culture. An exploration of change in general is examined, as well as the reaction of employees (resistance) to these changes. Next, the article addresses the critical issue of stress, which is an M&A outcome within the new and uncertain environment. The article concludes with the process of managing and strategy throughout the phases.
Furthermore, the five major sections
(communications, corporate culture, change, stress, and managing/strategy) are sub-divided into three sub-sections: pre-merger; during the merger; postmerger.
Management Decision
38/9 [2000] 649±661
# MCB University Press
[ISSN 0025-1747]
Introduction
Since the late 1980s, the total number of mergers and acquisitions (M&As) has far surpassed the number that occurred throughout the 1960s. Whereas the M&As throughout the 1960s were mainly due to unions between conglomerates, the 1980s and
1990s has witnessed an increase in M&As between firms of different sizes and
Steven H. Appelbaum
Concordia University, Montreal, Quebec, Canada
Joy Gandell
Concordia University, Montreal, Quebec, Canada
Harry Yortis
Hydro-Quebec, Montreal, Quebec, Canada
Shay Proper
Montreal Stock Exchange, Montreal, Quebec, Canada
Francois Jobin
Kruger, Inc., Trois-Rivie
Âres, Quebec, Canada
Keywords
Mergers and acquisitions,
Organizational behaviour, Process efficiency, Managers
Abstract
The multiple organizational factors impacting on a merger as well as those processes being impacted on throughout the merger process will be examined. First, the issue of constant and lucid communication and its importance throughout the merger and acquisition (M&A) process will be addressed. Second, an examination of the current corporate culture and its effects on employees when two companies merge is analyzed, while illuminating the realities of the new culture. An exploration of change in general is examined, as well as the reaction of employees (resistance) to these changes. Next, the article addresses the critical issue of stress, which is an M&A outcome within the new and uncertain environment. The article concludes with the process of managing and strategy throughout the phases.
Furthermore, the five major sections
(communications, corporate culture, change, stress, and managing/strategy) are sub-divided into three sub-sections: pre-merger; during the merger; postmerger.
Management Decision
38/9 [2000] 649±661
# MCB University Press
[ISSN 0025-1747]
Introduction
Since the late 1980s, the total number of mergers and acquisitions (M&As) has far surpassed the number that occurred throughout the 1960s. Whereas the M&As throughout the 1960s were mainly due to unions between conglomerates, the 1980s and
1990s has witnessed an increase in M&As between firms of different sizes and
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