Case #6: Company Mergers

Challenge: Multi-level Merger Plan

A large cooperative acquired a company, which, in turn, acquired three more companies in the same business. A multi-level merger plan and implementation was, thus, necessary to incorporate the acquired company into the parent company, and then to merge the three new companies into the just-acquired company.

MGC's Solution

In conjunction with the HR professional of the parent company and the newly acquired company, MGC:

  • Conducted a cultural assessment in each of the acquired companies.
  • Assisted in developing job descriptions and responsibility charts.
  • Assisted in developing common procedures where circumstances allowed.
  • Developed training in quality improvement processes for executive committees at each site.
  • Assisted in facilitating executive committee meetings to develop a mission, vision, values, and strategic plan.
  • Implemented evaluation processes for determining the effectiveness of the various meetings within the merged company.
  • Provided executive coaching, as appropriate, to executives from each of the companies that were acquired.
  • Addressed the development of a common policies manual.
  • Assisted in other tasks that were necessary in making the merger successful.

Results

Eventually, duplicated job functions were merged, with employee reassignment. The identity of the first merged company disappeared as the parent company took over the leadership of the merged company. The workforce was successfully reduced on a voluntary basis by about 10% through quality improvement activities. Many years later, the merged company continues to function and is very successful.

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