The document discusses several key factors for successful mergers and acquisitions including managing cultural differences between companies, retaining key employees, ensuring compliance with laws, aligning compensation plans, assessing cultural fit, and clear communication. It provides details on GE Capital's acquisition strategy which includes appointing integration managers, forming executive teams from both companies, developing a 100 day communication strategy, assessing workflows during integration, and providing long-term adjustment and discussions. The strategy focuses on open communication, job security, and orientation training for acquired employees.

1. By
Pratik Negi
Shalini Kaushal
Gurpreet Bhardwaj
Chirag Kanani

2.  Two-third of the big mergers and
acquisitions fail
 Differences in the top management
 Absence of strategic planning
( For E.g. The Jet-Sahara Fallout )
 HR issues(Glaxo-Wellcome-Burroughs )
 Cultural disconnect

4.  Retention of Key employees
 Compliance with applicable laws
 Alignment of compensation & benefit plans
 Cultural fit
 Employee communication

5.  Pre- M & A phase
assessment of differences
role clarity
management styles
 Post-M&A phase
designation for employees
compensation & PMS
relation between management & trade unions

6. 6

7. Acquisition strategy of GE Capital
Successful model “Pathfinder” for acquiring firms
1. Pre-acquisition -> integration manager(cultural
assessments, communication strategies )
2. Foundation building(team of executives from GE
- acquiring company formed)
100 day communication strategy evolved
3. Integration phase(assessing the work flow,
assignment of roles)
4. Assimilation (long term adjustment, internal
discussions between the teams, reaping the
benefits)

8. Believes in open, honest & consistent
communication strategy ,no layoffs and job
security guaranteed, No forced acquisitions
1. Acquisition team evaluates the working style
of the management, the caliber of the
employees, technology
2. Top level integration visits target company
gives clear information & future roles of the
employees
3. Employees of acquired firm given 30 days
orientation training

9.  Train managers on the nature of change
 Technical retraining
 Family assistance programs
 Stress reduction program
 Explaining new roles
 Helping people who lost jobs(Outplacement)
 Post merger team building

10.  HR role both tactical & strategic in M&A
 Open mindset what works well
 Maintain synergy with merged or acquired
firms
 Remove “us vs them”
 Managing grapevine by effective
communication strategy
 Ensuring confidentiality & Knowledge
 Proper counseling and career assistance