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| Mergers & takeovers |
| Case study |
The initial situation is quite simple : a merger between two manufacturing companies. However, before the initial
agreement can be tied up, a third entity comes into the equation.
The specific characteristics of the merger are as follows :
- The two main companies are in direct competition in most of their business areas
- Their corporate culture and management models are directly opposed
- The takeover company is losing money
- The structures are complex and the legal status of subsidiaries is far from homogenous
- Human resources are not identified to any significant degree
- The management style of the takeover company is somewhat autocratic.
The main point of support for a successful merger is the arrival of a new Management team which does
not belong to any single side but which is totally credible in view of its past exploits.
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What happens next ? |
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- The first step is to identify the supports and hurdles and to draw up a new Management Model
- A Team Building operation with the new management team helps to focus attention on the new Management Model
- Parallel re-organisation by business of the different organisations, flattening of administrative procedures and harmonisation of legal structures
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Role played by Eur'Egide |
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- Strategic reflection and implementation of the merger strategy
- Design of the Management Model
- Experimentation of merger-facilitating practices based on the Management Model (via Dynamic Training Management)
- Drawing-up of new operational methods
- Standardisation of the project and its associated practices, followed by knowledge transfer to all persons involved in the merger
- Creation and management of a steering group empowered with deployment to all subsidiaries
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Results |
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The merger is successfully completed in less than 18 months. People involved in the operation are managed with total respect for their own person and according to clearly-defined rules. A common identity is established, based on a totally-shared project aimed at ensuring a smooth culture-shock transition. Differences are highlighted rather than hidden, thus contributing to the creation of a totally new entity. Real synergy is created, and financial results remain, at the very least, stable, and at best, are exceeded.
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