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ROLE OF HR IN MERGERS AND

ACQUISITIONS
MERGER
 Merging of two companies
 One company continues to exist

Types Example
Horizontal Merger Lipton India and Brooke bond
Vertical Merger Apple and Starwars Motion Capture
Conglomerate Merger Walt Disney and ABC
Market Extension Merger Eagle Bancshares and RBC Centura
Product Extension Merger Mobilink Telcom and Broadcom
ACQUISITION
 One company purchases most or all the shares of other company
 To take control or overpower

Successful Un-successful
Flipkart and Myntra E-bay and Skype
Ranbaxy and Daichi Newscorp and Myspace
The British Council
What drives the company to consider a merger or an acquisition ?

 What do you think is the best time for a transaction ?

 How important is effective communication during a merger or an


acquisition ?

 What role does HR play in change management ?

 What steps should be taken by the HR that the work culture that was
build by both the firms stay intact and blend in perfectly?

 How does an HR help the employees in accepting the change in hierarchy


structure ?
The British Council
 How can companies prepare for and deal with the loss of key employees?

 How does the company decide upon policies such as compensations, benefits
and welfare during M&A?

 Can information be shared between the two parties before the deal closes ?

 What are the pitfalls to avoid during a merger or an acquisition ?

 What factors constitute the stability of the firm post merger/acquisition ?


Edelweiss Group

 What drives the need for companies to consider a merger or an


acquisition ?

 How can organizations better enable their employees to manage


through a merger or an acquisition?

 Why would a company want to acquire another company?

 What is horizontal merger ?


Edelweiss Group
 Isthere any specific HR team that is made during this process takes
place ? What is all handled by them ?

 Different companies have different mentality and culture . How do you


integrate both cultures ?

 Are there many layoffs done while a merger or an acquisition process. If


so how is it handled ?

How much of a change do companies have in terms of compensation ,


benefits , welfare during mergers and acquisitions ?
Thank you!!!
Refrences

 https://www.mbda.gov/news/blog/2012/04/5-types-company-mergers
 https://www.wallstreetmojo.com/mergers-and-acquisitions/

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