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понедельник, 19 октября 2015 г.

Merger Integration Approaches

Philippe Haspeslagh and David Jemison (90) developed concept to define which approach would be most appropriate when integrating various parts of an organization after an acquisition. There are a number of traditional criteria that drive the integration approach: size of the respective businesses, style of the acquirer, overlap in terms of products and customers, etc. But the authors suggest to take into account two additional criteria:



The need for organizational autonomy should be viewed in the context of creating value through the merger. It is driven to a large extent by the question of whether the merger rationale is based on acquiring a specific set of capabilities. A certain degree of autonomy may be necessary to preserve and develop these strategic capabilities.

The axis of strategic interdependence is fairly self-explanatory. It tends to be high if the businesses operate in similar markets, significant cost synergies are expected, and value is created by transferring a significant amount of functional or general management skills.

As a result, the authors see four broad approaches to merger integration:
Preservation: Keep the sources of the acquired benefits intact, nurture the acquired business.
Symbiosis: Take a gradual approach, pick the best of both worlds, pay careful attention to cultural integration issues.
Holding: No integration, run the business fairly separately, focus on financial benefits, risk sharing, general management capabilities.
Absorption: Push for a quick and full integration, take courageous actions.