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Human Resources management in M&A - A media study


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This is a media review of HR Management practices in Mergers and Acquisitions and how some of the well known M&As have transpired in the past.

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Human Resources management in M&A - A media study

  1. 1. AGENDA• CASE STUDIES AND MEDIA REVIEW • ABInBev • Total S.A.• INSIGHTS AND TAKE AWAYS • Factors of Success and HR aspects in M&As • Post M&A integration - Pros and Cons
  3. 3. 2008  Modern  European  Cost- Cutting  Traditional  American  ExtravagantAim: To gain leadership in the Beer Market
  4. 4. The OutcomeUSD 52 bIllion dealMarket cap: USD 63 billion (2011) 1400 jobs slashed in the US InBev culture imposed Cost-cutting atmosphere Incentives based pay Executives replaced Another cost-cutting plan in 2010 “I thought the message from InBev was, if you don’t think we’re serious, look at what we’re willing to destroy,” Cheryl Stelter, 21-year A-B employee
  5. 5. 1999  North Africa  Middle East  Western Africa  Inshore  Offshore  Gas Elf AquitaineAim: To gain leadership position in oil industry
  6. 6. TOTAL S.A. USD 46 billon deal Market cap: USD 101 billion (2011) 93,000 employees (2011) 340 job cuts in senior management 1313 job cuts in workforce All job cuts on incentive plans – no dry layoffs Pension schemes unified over 3 years under Total System
  7. 7. INSIGHTS
  8. 8. KEY THEMES IN THE MEDIA Layoffs Other cutbacks Culture Change Impact on the community Financial implications
  9. 9. HR ASPECTS & SUCCESS FACTORSIN M&A Early preparation (strategy, costs, regulations) Coordinated commitment of all actors Lines and corporate functions including HR Follow-up on integration plan  Degree of integration  Corporate culture  Compensations (in integrated corporations)  Job cuts (when functions are redundant)
  10. 10. LONG TERM EFFECTS Uncertainty over Executive Turnover Political exposure: Employment & Strategic assets
  11. 11. KEY TAKE AWAYS • M&A: strategic and financial • HR preparation required to prevent failure • HR execution: key to long term success • Local regulations: additional obstacles
  12. 12. QUESTIONS?