Question

Topic: Strategy

Post Merger/acquisition Strategy For Partner/staff

Posted by bgourl10 on 250 Points
I've been asked to develope merger/acquisition strategies for staff so that the business can develop. I think this means ideas about how to make them bond etc. The context is financial partners. I also have to state how the business can then grow and what the opportunities and threats to mergers are.

I really want it to look professional so would be grateful for any suggestions, models, theories or structures that I can include.

Thanks in advance
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RESPONSES

  • Posted by Frank Hurtte on Accepted
    I recommend you read the book,
    5 Frogs on a Log

    It is a great guide to mergers/acquisition strategy.
  • Posted by bgourl10 on Author
    I don't have time to order/buy the book! any other suggestions/frameworks?
  • Posted on Accepted
    I'd start with a SWOT analysis for your company, so you will be able to identify the strengths you bring to a merger/acquisition, and the weaknesses you need to shore up (in order to make the acquisition good for you).

    When you then identify a specific target company, you can do a SWOT for them and see how well it fits with your own SWOT profile.

    There is no single right way to do this. If you have the time/budget, you might want to get a consultant to work with you on this, as it is a fairly specialized area and it's best if you can get someone who has been through the drill before.
  • Posted by Markitek on Member
    When I was about to take my Master's exams in English I realized I hadn't taken enough Romantics to be able to be intelligent on the topic. I went to the head of the Romanitcs department and asked him if he could tell me what I needed to know in a quick hour in his office. He told me he could not and would not . . . and he was perturbed that I would even make such an impertinent request without even bothering to do the first iota of research or reading. I learned a lot from that.

    Enough said.
  • Posted by telemoxie on Accepted
    have you tried a Google search on +“merger strategies” ?

    People spend years of their life becoming expert in topics such as these. As much as we might like to, we can not teach you everything you need to know on this forum.

    If I were in your situation, I would spend 10 or 12 hours with the Google researching mergers and related topics, and then I would prepare 20 or 30 questions which I could ask so that I could better understand exactly what I was being asked to do.
  • Posted by matthewmnex on Accepted
    What is key in a successful merger is that the 2 companies have complimentary expertise and assets not the SAME expertise and assets.

    Access to different markets of different market sectors.

    Check how the 2 pieces of the jigsaw fit together to form a bigger picture. I the picture emerging is not bigger or clrearer than the original picture then you are wasting your time.

    that is on the commercial side.

    On the CULTURAL side, things get more tricky.

    Successfully 'merging' the human resources can be tough.

    many may need to lose their jobs. There is going to be a financial cost involved in re trenching people so figure out if the cost is worth the headache.

    Understand well the leadership of each entity, if the vision and working style of the 2 CEO's is very different, it may be very difficult to successfully marry the 2 entities.

    Also, you will have the problem of how to decide which of the 2 CEO's takes the reigns of the new entity after the merger.

    It is definitely not an easy proposition and cannot be solved in a single college paper that you are preparing.

    You need to READ the books that were advised and you need to take the time to prepare your paper seriously. This kind of paper needs 3 months of serious research and due diligence.

    Good luck.
  • Posted by SteveByrneMarketing on Accepted
    bgourl10,

    I agree with Dave, Matthew and other posts from above.

    Honestly, I would go back to whoever made this request and suggest hiring a really good M&A consultant. It will be well worth the cost.

    hope this helps,

    Steve

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