What major issues need to be addressed during a merger or acquisition?

While HR's role in the early stages of the merger and acquisition process is growing, the majority of HR's responsibilities come into play after the fact --after the decision has been made. It regularly falls to line management and to human resources professionals in each organization to ensure that the companies become successfully integrated.


Mergers and acquisitions, including joint ventures, must be kept confidential until the principals agree. Many laws govern these actions and prohibit any communications before the parties have agreed. Further, typically during pre-merger talks, company counsel govern all decisions and limit communications. Therefore, the task of planning and preparing the organizations for the action is severely limited and becomes more critical. Most members of each organization will read about the action in the newspaper or hear about it from associates.


Every merger and acquisition is unique, requiring its own special plan. However, nearly every merger and acquisition requires attention to these basic issues:


l Defining the structure of the new organization [see 93,050]


l Reassigning personnel [see 93,060]


l Integrating records [see 93,080]


l Establishing a communication plan [see 93,100]


l Addressing salary and benefit issues [see 93,150]


l Setting policies and procedures [see 93,160]


l Coordinating strategic planning processes [see 93,170]


l Examining contracts and outsourcing arrangements [see 93,170]



Reprinted with permission. © CCH

93,040, What major issues need to be addressed during a merger or acquisition? While HR's role in the early stages of the merger and acquisition process is growing, the majority of HR's responsibilities come into play after the fact --after the decision has been made. It regularly falls to line management

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