Hostile Takeovers

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  • #114880

    Sarah
    Participant

    Do hostile takeovers have an easier or harder time integrating with the target company?

    #114942

    JIANXIANG CHUA
    Participant

    It depends I would suggest. Depending on the company’s leadership abilities and the test of skills of management and the integration team.

    #115175


    Participant

    It would also depend on the acquiring company’s goal – integration or absorption. Are they going to want to take the best of both companies, or do they want the target company to follow their policies and procedures and adapt to the acquiring company’s culture. I would anticipate that the resistance would be greater if the goal was absorption.

    #115186


    Participant

    The level of difficulty may also be driven by the specific benefits that were used to justify the deal. These can provide common goals around which functional personnel can be brought together to create value together.

    But the acquirer’s retention solution will likely make a big difference as well. Beyond top management of the Target, the PMI lead and HR will have to move fast post announcement to determine other key personnel to make an effort to retain.

    #115197


    Participant

    It is also greatly affected by the motivation behind the hostile takeover. If the hostile takeover is meant to generate revenue or cost synergies that will benefit employees of both the target and acquirer, it will likely be easier for post merger integration especially given the fact that in hostile takeovers, there is a high probability that senior management of the target, who are usually the people who resist integration or change, would be replaced.

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