Spring / February 2012Master of Business Administration- MBA Semester 3MF0011 – Mergers and Acquisitions - 4 Credits(Book ID: B1209)Assignment Set- 1 (60 Marks)Note: Each Question carries 10 marks. Answer all the questions.
Q1.What are the cultural aspects involved in a merger? Give sufficient examples.There are many factors which require attention of the management and tend to widen its role in post-merger integration. A list of such factors is give below in brief:· Legal obligationFulfillment of legal obligation becomes essential in post-merger integration. Such obligationsdepend upon the size of the company, debt structure and controlling regulations, distributionchannels, and dealer net-work, suppliers’ relations etc. In all or some of these cases legaldocumentation would be involved. The rights and the interests of the stake holders should be protected with the new or changed management of the acquiring company. Regulatory bodies likeRBI, Stock Exchanges, SEBI etc would also ensure adherence to their respective guidelines andregulations. It should be ensured at the time of integration that the company out its legalobligations in all related and requisite areas.· Consolidation of operationsAcquiring company has to consolidate the operations, blending the acquired company’s operationswith its own operation. The consolidation of operation covers not only the production process,adoption of new technology and engineering requirements in the production process, but also theentire technical aspects covering technical know-how, project engineering, plant layout, scheduleof implementation, product designs, plant and equipments, manpower requirements, work schedule, pollution control measure etc. in the process leading to the final product.· Installation of top managementMerger and acquisition affect the top management structure. A cohesive team is required at boardlevel as well as senior executive level. Installation of management in the process of integrationinvolves combination of issues related to:· Selection or transfer of managers· Changes in organizational structure