Mergers And Acquisitions

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by the managements off both, the target and the acquiring firm. If the transaction is particularly large, it may have to be voted on by the firm's board of directors or stockholders.
In a merger transaction the target company is dissolved into the acquiring company. The target company ceases to exist as a separate entity. The transaction can be executed through an exchange of stock or assets. The procedures for executing a merger transaction tend to be fairly straightforward. On the downside, mergers often require the approval of both the acquiring and target firm's shareholders and the acquiring firm assumes all of the target's liabilities.
A stock acquisition occurs when the acquiring company buys shares in the target company from individual stockholders. If the stock is privately held, the acquirer can deal with the stockholders individually. If the target is a wholly-owned subsidiary of another company, the transaction is conducted by the management of the acquiring firm ...

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to Buouno (1992) most human resource (HR) researchers involved in the merger and acquisition (M/A) process agree that the personal, interpersonal, group, and inter-group dynamics that follow the combination of two firms are significant determinants of merger success or failure. It is more often not the financial performance of the new company that determines the success of the new firm. It is the ability of the individuals who have build distinct organizational cultures to blend the cultures into a new, third identity. As a growing body of research continues to document, M/A combinations typically have far reaching and dysfunctional effects on those involved (Buouno and ...

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