M&A In Hr

Páginas: 13 (3032 palabras) Publicado: 27 de febrero de 2013
MERGER AND ACQUISITIONS IN HR.

1. Introduction
2. Merger and acquisitions
3.1.1. Definition and types
3.1.2. Reasons to carry out a merger or acquisitions
3. The Human Resources in the process M&A
4.1.3. What does it means in terms of senior management in HR?
4.1.4. Which are the actual effects in HR in senior mangement
4. Theevaluation in the process of M&A
5.1.5. Case study.
5.1.6. Develop in long term
5. Conclusion

1. Introduction
Mergers and acquisitions are complex operations from which two different entities join forces to create a new entity that adds assets, liabilities, brands, products, customers, processes and technology, the two original entities. Of course that people thatformed each one of these entities, were also added however, when comes to the sum of human beings is not algebraic. Hence arises a question; Value creation or destruction of employment. (Cordoba, Mathew, 2004)
People integrate workteams, they relating to each other, but also establish relationships with the community they belong to, and this has a direct relationship with the results that originatefor the company. In a fusion organization of merged companies cultures are transformed, are lost and are replaced by the culture of the new entity that is generated.
Knowing the human dimension in processes of mergers means knowing the possible consequences, know the motivations and relationships of each of the companies that integrate and create a new culture desired for the mergedorganization.
The decision to carry out a merger or an acquisition, is basically an economic decision, specifically consists in an investment decision, it means, allocation of resources with the hope for future income which allow recover the invested funds and make profit. Therefore a merger or an acquisition will succeed if the purchase price is below the current market value. (Thomas Straub, 2007)2. Merger and acquisitions

3.1.1 Definition and types
The mergers are defined as a special form of societies union, by means of which one of them is extinguished by the total transmission of their heritage.
According to Tellado and Ramos (1999) there are two types of mergers: Pure merger and Merger by absorption.
The Pure Merger is defined when "two or more societies, legallyindependent, undertakes through an agreement to join their assets to form a new.
The second one knows as Merger by absorption, is defined as a society which incorporates and absorbs one or more other companies, which are also dissolved without liquidation.
There are many reasons for doing mergers and acquisitions, but the main features are; Total dissolution of the absorbed company. Intention oftransmission of the assets of the company being acquired to the parent company. The shareholders of the company being acquired become members of the parent company. Most of mergers operations are generally practiced in periods of economic expansion or crisis, and at least there is a transfer of all the assets and liabilities to the parent company
Acquisitions: It is defined as the processcarried out by a company when taking operational control of another, this is achieved through the purchase of shares. Usually in these operations buyer pays a higher amount by the shares acquired.
Considered that the acquisition has occurred when you buy more than 50% of the shares. According with Cartwright, (2001) there are five main different types of acquisition; Acquisition by consolidation;that in this case it is created a totally new enterprise, since companies disappear. The rules that apply in this case are the same as in mergers and the assets of both companies are joined. In Acquisitions of shares; it consists of buying the shares with voting rights. The purchase procedure usually begins with an offer that is communicated to shareholders. The Acquisition of assets; involve the...
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