Reference no: EM133654499

Many managers are overexposed in impressionable childhood years to the story in which the imprisoned, handsome prince, is released from the toad's body by a kiss from the beautiful princess. Consequently, they are certain that the managerial kiss will do wonders for the profitability of Company T (target). Such optimism is essential.

Dismiss that rosy view, why else should the shareholders of Company A (acquisitor) want to own an interest in T at the 2X takeover cost rather than at the X market price they would pay if they made direct purchases on their own? In other words, investors can always buy toads at the going price for toads. If investors instead bankroll princesses who wish to pay double for the right to kiss a toad, those kisses had better pack some real dynamite. We have observed many kisses, but very few miracles. Nevertheless, many managerial princesses remain serenely confident about the future potency of their kisses - even after their corporate backyards are knee-deep in unresponsive toads.

(Source: Warren Buffett, Berkshire Hathaway Annual Report in Arnold, Corporate Financial Management 2nd Edition Pearson Education Limited 2013.)

1. To ensure a successful merger and acquisition (M&A) process, the executors of Company A (acquisitor) should deal with a variety of challenges at every stage of the M&A.

You are required to provide a comprehensive report in which you advise the executors of Company A (acquisitor). Your report should include the following, as applied to the case study:

a) A critical analysis of the HR challenges that the executors of Company A (acquisitor) can expect at the integration stage of the merger and acquisition, and then critically evaluate the areas of people management that the above companies should focus on after the merger.