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Published by: Harvard Business Publishing
Published in: "Harvard Management Update", 2001

Abstract

Worldwide merger and acquisition activity reached an all-time high in 2000, with 9,500 deals announced totaling nearly $3.5 trillion. But most unions fail to add shareholder value--a majority of the newly formed companies perform well below the industry average. People issues such as unfocused leadership, employee retention, politicking, poor communication, and culture clash are often at the root of this dismal performance. But it doesn''t have to be this way. M&A experts offer insights for avoiding these deal-wrecking pitfalls. Includes sidebars on merger integration strategies and on the benefits of getting HR involved early in the integration process.

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Abstract

Worldwide merger and acquisition activity reached an all-time high in 2000, with 9,500 deals announced totaling nearly $3.5 trillion. But most unions fail to add shareholder value--a majority of the newly formed companies perform well below the industry average. People issues such as unfocused leadership, employee retention, politicking, poor communication, and culture clash are often at the root of this dismal performance. But it doesn''t have to be this way. M&A experts offer insights for avoiding these deal-wrecking pitfalls. Includes sidebars on merger integration strategies and on the benefits of getting HR involved early in the integration process.

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