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    Mergers and acquistions

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    Conduct research on the M&A you have selected; The selected M&A is AT&T/NCR. I need help on the following parts. (at least 1000 words)

    A. Determine the financing instruments used for the M&A strategy employed (debt, equity, others).

    B. Discuss the impact on the M&A in terms of human capital and the assimilation of differing organizational cultures.

    C. Discuss any relevant governance or ethical issues that the M&A activity faced during its formative term? Discuss the specifics and how this issue was handled?

    Please properly cite your references.

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    Solution Preview

    A. Determine the financing instruments used for the M&A strategy employed (debt, equity, others).

    The AT&T acquisition of NCR was a all stock deal, valued at $7.4 billion. The deal was an exchange of stock.

    B. Discuss the impact on the M&A in terms of human capital and the assimilation of differing organizational cultures.

    The merger between AT&T and NCR was a complete failure and AT&T suffered huge losses by acquiring NCR as it had to sell off NCR after few years due to significant issues in running the corporation profitably. One of the major causes of the failure was the lack of synergy between the corporate culture of AT&T and NCR after the merger. The clash between the cultural ideologies of both the companies destroyed NCR and resulted in huge losses for AT&T.

    The merger of AT&T and NCR-two similar organizations-failed partially because of the combination of disparate corporate cultures. AT&T was unionized, whereas NCR was not. NCR had a "conservative" corporate culture whereas AT&T was more "politically correct." Thus, the two companies did not gel well together after the merger.

    Reference: http://www.appanet.org/files/PDFs/APPAreportPost-MergerExperience.pdf

    Prior to the merger, smallish NCR was a promising computer company, based on a combined Unix and Windows strategy that seemed to make sense at the time. The company also boasted an entrepreneurial management team bent on innovation.

    A culture clash soon emerged between NCR and AT&T's more imperious style. At an AT&T briefing around the time of the acquisition, a high-level AT&T executive told a group of analysts: "Monopoly is good. ...

    Solution Summary

    Conduct research on the M&A you have selected; The selected M&A is AT&T/NCR

    $2.19

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