An evaluation of an acquisition process from the employees perspective

Abstract

Mergers and acquisitions are often preferred as a company growth strategy. Despite the tons of research papers, manuals, theoretical findings and impressive examples, huge amounts of M&A still fail. Why does this happen? Is it possible to overcome the challenges, and how could that be achieved? The more existing acquisition cases are analyzed, the higher the company’s chance of succeeding. The aim of this thesis is to analyze company X's integration process by conducting case study research, paying special attention to communication efficiency during financial training and workshops. It seeks to identify the main problems and provide practical ideas for future training for company Y. To answer these questions, theoretical concepts such as integration phases, approaches to change, and merger syndrome, have been analyzed. Special attention was paid to the recent studies regarding M&A, that included AI impact on the acquisition process, and the influence of the employees’ morale on the integration. The research was carried out as a case study of the acquisition process of company X by company Y. The primary data was collected via the survey, while the secondary data was taken from the annual reports of company Y and examples of internal communication of company Y to its employees via Intranet pages. After gathering and analyzing data, the efficiency of communication was evaluated. The integration process was considered from the employees’ point of view, identifying the weakest points and suggesting areas for improvement. Using the results of the research, company Y could improve its acquisition strategy. If the employees are in the focus during future acquisitions, that could help to simplify the integration process and make it more efficient and smoother.