Quick Search

Mergers & Acquisitions: The Human Impact of Company Takeovers

Mergers & Acquisitions .... Behind the Scenes

When a smaller company is acquired by a larger one this merger is usually seen in terms of opportunity. For the smaller organisation a takeover is deemed evidence that it is doing something right and has something to offer the wider marketplace. The larger firm gains recognition for being able to identify innovation and being in a position to progress.

All too often the human cost of takeovers is forgotten. If business reorganisation is not successfully managed it can have a detrimental impact on employees in both the acquiring organisation and the one being purchased.


Mergers & Acquisitions

When two companies come together, no matter how complementary their business activities, there will be differences in how they operate, their culture and style and even their basic business processes. For a merger to be successful this needs to be recognised and managed if a seamless future organisation is to be realised.


Employees are Affected by the Stress of the Acquisition Process 

Change is difficult for many employees, particularly if they have little or no involvement in decision making processes. A general dislike of change, however, can become more pronounced at a time when an acquisition is taking place. The upshot of this is often employee stress, poor morale and an impact of the ability to work effectively.


Successfully Managing the Merging of Two Organisations 

When it comes to successfully managing the merging of two organisations the key to ensuring success is to ensure that excellent communication is at the heart of the business planning process. As much information as possible should be shared with employees about what is happening, how this will impact on the organisation and, in particular, how this will affect individuals. Timescales for any changes should be given and regular updates provided to ensure that employees are not left behind.

It is sensible to assume that there will be a degree of conflict as the two organisations merge. It is inevitable that the ways things were done by the smaller company will need to change in order to meet the needs of the acquiring one, which will also need to adapt to bring a new organisation into its folds.


Employees Fear Job Loss

Additionally, employees of both organisations can be fearful that they will lose their jobs. In such difficult times it is not uncommon for some to leave the company altogether, preferring to find a new job rather than face uncertainty in their existing one.


To Retain Talent it's Essential During Mergers & Acquisitions to Consider Human Impact

If an organisation is to retain its talent it is essential that the human impact of a takeover is acknowledged. If it isn't, employees will look for a better role elsewhere.

Written by Heidi Eckersley of Circle Square - Financial Recruitment
To contact one of our specialist financial recruitment consultants call 0207 492 0700 or email: jobs@circlesquare.co.uk Connect with us on Google+  & Facebook
Related posts:
If you're not sure which career move would best suit your skills and experience take a look at our Job Profiles. The profiles provide advice on the qualifications, skills and experience

required for each career option. The job profiles also outline salary expectation, job responsibilities and career progression: M&A Analyst    M&A Associate    M&A Director    M&A Vice President

If you are looking for advice we have a dedicated career advice section. Our advice is not just generic recruitment advice we have tailored advice for each of the recruitment divisions we work in including: executive searchaccountancy & financetemporary & interimReal Estateprivate equitycapital markets & M&A RecruitmentTo view our M&A Jobs



We use cookies to provide you with the best possible browsing experience on our website. You can find out more below.
Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
ResolutionUsed to ensure the correct version of the site is displayed to your device.
SessionUsed to track your user session on our website.
Statistic cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.
Google AnalyticsGoogle Analytics is an analytics tool to measure website, app, digital and offline data to gain user insights.

More Details