...Merger of Equals Section 2 Yang LIU Student No. 5363940 Xiaoyi YAN Student No. 5363999 Yiding ZHAO Student No. 5516778 Zhuyun FANG Student No. 5484118 5P60 – Accounting Theory Professor Fayez A. Elayan Due Date: April 11, 2014 I. Background During the last decades, the merger and acquisition happened in the constantly developing economy, primarily deriving from the United States. Since the financial crisis happened in 2008, most companies in the world faced risks and losses; however they also had challenges and opportunities. Meanwhile merger and acquisition gave them the opportunity to get rid of the risks and losses that in turn allowed them to redevelop. Merger of equals became a new mode of merger and acquisition in recent years, which plays a significant role in the current global market. It is known that, merger of equals have been on the rise in order allow for sustainable and fast development. There are many reasons why companies’ merge and some examples could be illustrated to prove the points of views. The purpose of the merger of equals is to keep equality amongst the companies. Specifying the expectations of the merger is often a large part of the merging process. Since the trend of merger of equals is more and more popular, we wonder why merger of equals becomes so important in our daily. Unfortunately, there are few research about merger and equals, especially the influence on earning quality. Through all the...
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...CURRENT ISSUES SERIES Mergers & Acquisitions: Organizational Culture & HR Issues Deborah A. Pikula IRC Press Industrial Relations Centre Queen’s University Kingston, ON K7L 3N6 Tel: (613) 533-6709 Fax: (613) 533-6812 E-mail: ircpress@post.queensu.ca Visit our Website at: http://qsilver.queensu.ca/irl/qsirc/ Queen’s University ISBN: 0-88886-516-3 © 1999, Industrial Relations Centre Printed and bound in Canada Industrial Relations Centre Queen’s University Kingston, Ontario Canada K7L 3N6 Publications’ Orders: 613 533-6709 Canadian Cataloguing in Publication Data Pikula, Deborah A. Mergers & acquisitions : organizational culture & HR issues (Current issues series) Includes bibliographical references. ISBN 0-88886-516-3 1. Personnel management. 2. Corporate culture. 3. Organizational change. 4. Consolidation and merger of corporations. I. Title. II. Series: Current issues series (Kingston, Ont.). HF5549.P469 1999 658.3 C99-932294-X Executive Summary Mergers and acquisitions are increasing in North America as organizations try to expand their operations and increase their competitive advantage. But despite optimistic expectations, mergers and acquisitions frequently fail, in part because managers neglect human resource issues, which are rarely considered until serious problems arise. This study highlights the importance of proactive management of human resource issues, concurrently with financial issues, and offers detailed practical advice to help ensure...
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...CURRENT ISSUES SERIES Mergers & Acquisitions: Organizational Culture & HR Issues Deborah A. Pikula IRC Press Industrial Relations Centre Queen’s University Kingston, ON K7L 3N6 Tel: (613) 533-6709 Fax: (613) 533-6812 E-mail: ircpress@post.queensu.ca Visit our Website at: http://qsilver.queensu.ca/irl/qsirc/ Queen’s University ISBN: 0-88886-516-3 © 1999, Industrial Relations Centre Printed and bound in Canada Industrial Relations Centre Queen’s University Kingston, Ontario Canada K7L 3N6 Publications’ Orders: 613 533-6709 Canadian Cataloguing in Publication Data Pikula, Deborah A. Mergers & acquisitions : organizational culture & HR issues (Current issues series) Includes bibliographical references. ISBN 0-88886-516-3 1. Personnel management. 2. Corporate culture. 3. Organizational change. 4. Consolidation and merger of corporations. I. Title. II. Series: Current issues series (Kingston, Ont.). HF5549.P469 1999 658.3 C99-932294-X Executive Summary Mergers and acquisitions are increasing in North America as organizations try to expand their operations and increase their competitive advantage. But despite optimistic expectations, mergers and acquisitions frequently fail, in part because managers neglect human resource issues, which are rarely considered until serious problems arise. This study highlights the importance of proactive management of human resource issues, concurrently with financial issues, and offers detailed practical advice to help ensure...
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...established two years ago when ValMed and PharmCO merged. PharMed is obligated to keep detailed records of how its drugs perform by relying on sophisticated database such as the Vigilance which will be used by division employees around the globe. The core team responsible for designing and implementing Vigilance has three members in the United States: Frank Lanigan, Carol Reynolds, and Mike Powell; and four members based in France:Didier Amrani, Karine Bareaut, Merline Bucquet and Fabrice Lemaire. In addition to the core team, five subteams were formed. Overall, half of the subteams’ members are located in the United States and half are based in France. Most of the U.S. core and subteam members were previously employees of ValMed. Before the merger, several of them, including all of those on the core team, played key roles in efforts to develop a similar system called Perspective. Several months later, the newly merged organization decided to scrap Perspective in favor of Vigilance. The Perspective team members were disappointed, but understood the rationale for the change in direction. The Vigilance core teams were introduced to each other virtually and had been working with each other via teleconferences. These teleconferences were frequently cancelled by Didier Amrani, the project manager, without notice and without him having sought input from the rest of the team as to whether there were issues they wanted to discuss. Didier strongly controlled the way meetings were run...
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...MAC 600 Business Management and Governance 3rd Trimester – AY 2013-2014 CASE ANALYSIS Hewlett-Packard Under Carly Fiorina and After Her Submitted by: Chris L. Espina Date of Submission: May 17, 2014 I. Perspective held by the Students This case talks about the management and leadership of Carly Fiorina, the chosen CEO of HP after her long years with AT&T and Lucent Technologies. She was known to be a woman of “silver tongue and iron will”. She dropped out of law school and pursued for Business Administration and Marketing Career and found herself successful in the field of sales and marketing, thus paving her way to be a top choice for the chief executive position of Hewlett-Packard. The perspective taken in this analysis was on Carly Fiorina. It is then to be assessed, her actions and decisions made for the company and how did it affect in the entity’s performance. Recognition of elements and factors were done regarding on the negative effects of the actions she took for HP, that made her lose her credibility in the company and resulted to her resignation from the position she was handling. II. Case Facts Hewlett-Packard is known to be the second largest computer maker in the world. In 1999, the company hired Carly Fiorina to be its Chief Executive Officer, who is the first outsider who ever filled a top position in the company for the past 60 years. She was a student of philosophy, medieval history and marketing. With her skills in sales...
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...UTAH SYMPHONY AND UTAH OPERA: A MERGER PROPOSAL Case study prepared by Kristian Alexander for Professor John Oesch. © Rotman School of Management, Kristian Alexander, 2004. ____________________________________________________________ _______________________ 1. The case1 Unlike major arts organizations in Europe and Canada that rely heavily on government agencies for their funding, orchestras and opera companies in the United States operate according to a very different financial model and generate income primarily through ticket sales (approximately 46%) and individual contributions (approximately 36%). Since September 11, 2001, all arts organizations in the United States had experienced a dramatic decline in public and government subsidies that had led to revenue loss and major operating deficit. To compensate for the decline in attendance, ticket prices had been slightly increased but this did not stop the stagnation in the arts organizations. Utah Opera was formed in 1976 by the renowned European operatic talent Glade Peterson who served as a General Director until his death in 1990. The following year Anne Ewers was named General Director. Under her direction, the opera continued to 1 Case study written by Professor Thomas J. DeLong and Ph.D. Candidate David L. Ager, Harvard Business School, No. 9-404-116, Boston, MA, 2004. 1 grow, increasing its number of annual productions and the number of young people attending the performances of the...
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...District, 201620 Shanghai, China jiangxi-219@163.com 1900, Wenxiang Road, Songjiang District, 201620 Shanghai, China yanhelen@163.com 2 3 Keywords: cross-border M&A; cross-cultural management; M&A process Abstract. This paper aims to investigate Chinese enterprises’ cross-culture management issues from the perspective of three stages of before, during and after the cross-border merger and acquisition. It proposed an analytical framework of cross-culture management under which the major focus was on the cultural distance measure, the choices of negotiation/information disclosure, integration mode selecting, culture conflict/ integration and culture innovation in the process of Chinese enterprises’ cross-border M&A. 1. Introduction According to the “China's Foreign Direct Investment Statistical Bulletin 2010”, China's foreign direct investment, the amount of direct investment, in the form of M&A, reached $29.7 billion in the fields of mining, manufacturing, electricity production/supply, professional technical services and financial sector in 2010. From the report of Chinese enterprises overseas mergers and acquisitions of PricewaterhouseCoopers, the number of transactions in 2011 reached a recordbreaking 207 deals, totaling up to $ 42.9 billion. Cross-border M&A of Chinese enterprises is entering in to the boosting stage. The global wave of cross-border M&A began in the 1970s and 1980s. [1] In recent years, the cross-border M&A of Chinese enterprises significantly increased...
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...over by his son in Arun Firodia in 1985. Kinetic then merged with Honda to form Kinetic Honda Motor Ltd with stakes of 28.56% each concentrating on scooters and spare parts. Kinetic Honda Manufactured Scooters while Kinetic engineering manufactured mopeds. In the 80s Kinetic Honda had the largest market share of mopeds which dropped in the 90s by half to 22%. There was also competition in the two wheeler industry by Suzuki and hero Honda. This led to a further poor performance of Kinetic in the market. The poor performance was brought about by conflicts of interests between Honda and Kinetic; each wanting their brand promoted more than it was at the time. Honda also competed with Kinetic Honda through hero Honda in the larger two wheeler market. The poor performance of the scooter industry was leading to a diminishing market. Kinetic realized that their brand was slowly diminishing and decided to pull away from the merger; Honda shared the same sentiments and asked Kinetic to buy them off or vice versa. Firodia bought the 51% stake of Honda and gained full control of the Organization. The new company was called Kinetic motor Company; the company restructured and was able to implement decisions much better. There was better promotion and growth in sales and revenue of Mopeds and Scooters. In 2001, the kinetic group was comprised of the Kinetic engineering company and the Kinetic Motor Company. Kinetic continued to expand and re-establish its position in the market...
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...Kudler Fine Foods and Wine Company Merger Troy T FIN 370 March 19th, 2014 Kudler Fine Foods and Wine Company Merger Since 1998, Kudler Fine Foods has proudly served residents of Southern California with the highest quality of meats, produce, cheeses, and other fine food products. The Kudler grocery store brand is well known for the quality of their products, the deliverance of exceptional customer service, and their philanthropic efforts within the San Diego community. Additionally, the increase in Kudler Fine Foods' popularity stems from the fact that they offer their shoppers locally grown products, further supporting the region's economy. In recent boardroom discussions, the leadership team at Kudler Fine Foods has expressed their desire to expand the business to other regions, increase exposure in sub-markets and ultimately, obtaining revenue growth. After months of deliberation, the executive team has decided to expand their operations by merging with their former competitor Macy's Market. Prior to finalizing their merger, Kudler's Fine Foods explored numerous options for their expansion. They contemplated offering an IPO and an acquisition, before finally deciding on a merger with Macy's Market. The Macy's Market organization can offer financial stability while Kudler's Fine Foods has the reputation in the community. Furthermore, the leadership team at Kudler conducted a detailed SWOT analysis on the potential effects of such a merger. Operating as one organization,...
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...model The deal to a merger between two of the giants are remarkable achievement. There are no cultural differences. "Although the integration of the team spent after the merger of DaimlerChrysler, several million dollars has work on cultural sensitivity seminars for their staff on topics such as sexual harassment in the American and German restaurants etiquette, larger errors in business practice and management settings remain unchanged. So both brands could contain preserved different cultural class: • James Holden, the President of Chrysler from September 1999 to November 2000 described what he saw as "married up, marry down" phenomenon. "Mercedes, perceived as a fantasy, a particular brand, and Chrysler, Dodge, Plymouth and...
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...Summary The present study investigates how mergers and acquisitions impact the morale of employees in the banking sector. This report recognizes the lapse in research in this particular area even though mergers and acquisition are some of the most common means used by banks to pull resources together and enjoy economies of scale. Indeed most of the studies that were done in the past were actually outdated, and the most recent ones did not effectively explain the impacts that mergers and acquisitions had on the morale of employees working in the banking sector. Based on this realization, this study sought to deal with all the foregoing issues by generating new information that would point the exact impact mergers and acquisitions in the banking sector had on the morale of employees in the banking sector. By using qualitative research methods, this study seeks to provide answers to three research questions. The first question that this research seeks to answer is the kinds of impacts that mergers and acquisitions on the morale of employees working in the banking sector. Secondly, this study aims to provide an understanding of how employees think the negative effects of mergers and acquisitions can be dealt with. The last research question is what happens to employees during the processes of merger and acquisition. The study is designed to provide deeper understanding on the sort of impacts that result from bank acquisitions and mergers, particularly from the perspective of the...
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...Change and Culture Case Study I Lydia Wooten Managing in Today’s Health Care Organizations HCS/513 September 17, 2012 Darlene Cantu Change and Culture Case Study I There are many reasons why mergers take place. The main reason why corporation exists with merging with companies is to enhance their level of competition in the market. It is however important to note that conjuring departments into a single organizational unit is a different form of merging. This is due to the fact that the cultural transformation may not be as great as merging two companies. The major challenge involved with merging is getting two different groups or staff to work collaboratively to realize real benefits. In this scenario, am a middle manager in a healthcare organization that has merged with a previous competitor, Competition has been viewed to result to delivery of poor quality of care. One unique aspect about the new organization is the fact that it has in place numerous outpatient and inpatient services that our organization does not. This paper will be described what affects the organization will have on the culture on terms of systems and shapes. In detail provide quality care from the middle manager to ensure the staff will ensure quality care without a competitive point of view. Impact Sale on the Culture of the New Combined Organization T-Mobile and AT&T are similar organization but they provide different services. The same scenario for health care organization they...
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...Paid time off is an important factor to give it an attention and discuss deep discussions between the two companies to be merged and that to know the differences in domestic policies and policies on the subject between the two companies. In the situation to be studied, there is a clear difference in the policies for the PTO in the both companies. The company A has a bigger number of days of PTO than the company B. And this topic should be viewed seriously because that could be a reason for non-completion of the merger. There are a lot of information that should be shared between the two companies to learn the differences in domestic policies and rules on PTO. For example, the current financial situation for both companies and what they expect financially after the merger. The history of the PTO of the employees in the both companies and the number of PTO that each staff member took in the past years in the two companies. Also,The nature of the work in the both companies. For example, the PTO policies in the companies that working in the field of the manufacture of chemicals or nuclear reactors should be more flexible and include more categories than company operating in the field of organizing concerts or an educational company. Another point to focus on, that the amount of of diversity that they have in the both companies. If the have big number of employees that have different races, religions and cultures, they should expect a big number of PTO requests for religious or...
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...involved various administrative situations. The problems started from the time of the acquisition of Pacific Industries based in San Diego by Atlantica Inc. based in Boston. Pacific Industries was a high-tech company. This seemed to be a great fit for both Atlantica Inc. and Pacific Industries. As a result of this acquisition, Atlantica developed a powerful position in the marketplace. However, the employees in the San Diego location started to disagree with the procedures set forth by the management in Boston. The employees were not able to agree on measures that needed to be taken within the company. The problems resulted in a strong bitterness between the employees and the management, and created an atmosphere filled with revenge. After the acquisition, Atlantica got two separate facilities; the Easter Flight Center located in Boston, and the Western Flight Center located in San Diego. Atlantica decided that both flight-centers could directly report to the company’s president. Another decision made by the management was to reduce the mandatory retirement age to 65. The later decision by Atlantica forced the manager and chief pilot of the Western Flight Center, who was also a former Pacific Industries Aviation director, into retirement, and replaced him with the head of Atlantica’s Flight Ops. The employees in San Diego location disagreed with this replacement arguing that the manager and chief pilot of the Eastern Flight Center, merely wanted to get rid of a former Pacific...
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...New Evidence and Perspective on Mergers – A One Page Summary The authors of this article have provided further evidence on the value of mergers and acquisitions by updating the database to include facts for the 1990s to empirical research. They came to a conclusion that mergers seem to create shareholder value, with most of the gains accruing to the target company. In arriving at their conclusion, they reviewed issues on why mergers occur. They reviewed reasons for merger that appear to be more relevant in certain time periods. They argue that industries tend to restructure and consolidate in concentrated periods of time, that these changes occur suddenly, and that they are hard to predict. However, they state that explaining the long-term effects of mergers, and what makes some successful and others not, is still a question that remains largely unanswered. They also identify that, although merger and acquisition activity, occurs in readily identifiable waves over time, these waves are not alike. In fact, the identity of the industries that make up each merger boom varies tremendously. After identifying why and how mergers occur, the authors go ahead to identify winners and losers in the merger game. They identify that the most statistically reliable evidence on whether mergers create value for shareholders comes from traditional short-window event studies. The authors argue that the target firms consistently have abnormal returns of 16% in the announcement period across decade...
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