Abstract

Small and medium sized businesses often face similar issues as larger companies. The purpose of this research paper is to minimize the uncertaintyas much as possible. Also, this paper proposed an explanation regarding as to why some mergers and acquisitions failand fail to gain maximum market share, based on the information and data that is obtained from different dissertations published by authors and observers throughout the world.There are many motivating reasons behind mergers and acquisitions of companies, but no matter what the motivating factor is, the execution of such type of deal should be start and completed with an effectivestrategy. In order to make this deal identical, one should have proper planning and an effective strategy should be formulated in the earlier period in order to increase the rate of success of M&A. In the extensive literature review, it is found that the success of the M&A’s activity highly depends on the culture, communication, role of HR integration through the process. The strategies proposed in the paper might help small and medium sized companies while contemplating about mergers and acquisitions.

Mergers And Acquisitions Of Small And Medium Sized Enterprises Harvard Case Solution & Analysis

Introduction

Mergers and acquisitions have become the foremost and dominant mode of growth for the organizations which are seeking a competitive edge in an increasingly complex and global business economy. In the past two decades, cross border strategic partnership activities have significantly increased in the emerging markets. Several motives such as expansion, market access, distribution network, diversification, response to revolutionary change and sustainable competitive advantagein the acquisition of knowledge of other companies have been found in order to drive M&A. Indeed, 43% higher profit returns are reported from merged firms as compared to the non-merged firms all around the world. The merged firms are compared with non-merged firms and results show that the profitability of the firms can be increased through M&A, but declines in sales are also seen in merged companies (Gugler, 2003).

Even though the practices of mergers and acquisitionshave been beset by multiple sorts of problems with 70% cross border and 50% of domestic acquisitions, which are ultimately failing to yield intended and expected results. The core objective behind mergers and acquisitionsof SME’s is to accelerate the growth of the business because acquisitionsare quite faster as compared to organic growth to run the business operations through entering into new geographicallocationsto gain some technical and business capabilities and lastly, to gain market share (Shipperlee., 2017).

These activities are increasingly being used by organizationsin order to maintain and strengthen their position in the market. Today, there is a need that the companies mustgrow faster, efficient, profitable, growing, adaptable, flexible and future-ready and have a leading and dominant market position. It is projected by the fact that 70% to 90% of the cross border M&A often fail and the failure is attributed to the many factors related to Human Resource such as management style, incompatible cultures, loss of key talent, poor encouragement or motivation, diminished trust, lack of communication and uncertaintyregarding long term objectives.

This dissertation discusses the importance of the handling and managing issues that arise during cross border mergers and acquisitions, which empathizes on the HR role that has to be adept at identifying solutions of the recognized problem and persuading management of the organization to adopt them....................

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