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Critical Review: "Why HR Can Make or Break Your M&A"

Please critique the following literature review, methodolgy and state key findings.

The article can be found here: http://www.imaa-institute.org/docs/m%26a/towersperrin_04_why%20hr%20can%20make%20or%20break%20your%20M%26A.pdf

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Mergers and acquisitions have for long focused just on financial and operational factors to meet objectives of growth, cost cuts, increase in market share, or create synergies. However many mergers and acquisitions fail to meet their objectives. Though the wave of failures exist across industries the financial services industry has had a big share of underperforming deals which failed not for lack of strategic fit or financial reasons but due to people related issues like:
- Lack of consensus on future direction of the company
- Uncertainty across organization
- Culture clash between merged or acquired companies
- Attrition of key employees
- Ambiguity among employees; unclear expectations from employees leading to reduced morale

The life insurance industry has been using mergers as growth strategy as it has shown results in the past. To make sense from an acquisition, the newly formed company must be able to beat market expectations from the merger. A company would have paid a high premium and transaction cost to acquire another company. This acquisition premium recognized as goodwill on acquiring company's ...

Solution Summary

The expert determines why HR can make or break your M&A. A critical review is provided.

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