mergers and acquisitions posed major challenges to organizat

mergers and acquisitions posed major challenges to organizations today. within an area of your interest, provide 3 specific examples of challenges facen by organization involved in mergers and acquisitions within the last 5 years. next, selec one of the chlanges you have identified and discuss posible solutions to that challenge. include implementation strategies based on sound theoretical concepts.

Solution

Examples of mergers and acquisitions among some of the largest companies include the following :-

Honeywell and Allied signal , Boeing and McDonnell Douglas , Ford and Volvo etc

The three specific challenges faced by organization involved in mergers and acquisitions : -

Cultural challenges: An M&A brings two distinct cultures face to face. This is akin to a union of two totally different people. Unlike in a relationship where one hopes the onus is on making it work, a corporate M&A always
has an element of animosity, especially among the individuals at the target company, who tend to believe they have been taken over and upon whom the biggest adjustments usually fall. Conversely, employees at the acquiring
company may feel like they no longer fit in. They may be disinclined to expend the necessary effort to build bridges in the new organization. They may be unready or unwilling to retool, realign, and relearn how to do their
jobs. A lot of acclimatization and adjustment is expected on both sides.

Technical challenges: M&A also bring to the fore the state of the companies’ technical infrastructure. At the point of confrontation begins the exercise of planning a revamp or transfer of technologies, processes, and systems
needed to establish a common regime upon which the new organization will operate.

Compliance-related: When organizations merge there is a corresponding meshing of their compliance with applicable regulations. More often than not, organizations have achieved different levels of compliance, and
the merged organization needs a strategy to bring the laggard up to par (or both up to par, if that is the case). In some instances, the M&A may bring the need to comply with new regulations, and that will require additional
understanding, planning, and execution.

To overcome cultural challenges ,the following could be done : -