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Managing a Business/Mergers and Acquisitions.

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QUESTION: Dear Brad

http://en.wikipedia.org/wiki/Mergers_and_acquisitions

Examples :

1. Company A has been acquired by Company B.
2. Company A has been merged with Company B.

From the Employees perspective who are working in Company A, which among the two i.e. Acquisition OR Merger could be more risk prone from Job security point of view ?.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

ANSWER: It's not that simple as the use of the term "merger" and "acquisition" are often interchanged and quite often what is an truly acquisition is CALLED a merger in order to keep the peace with the owners or staff of the acquired firm.

Job security is going to be more closely related to whether you're in a line vs a staff function.  

A line position is directly involved in the operations of the company. Line positions carry out the main activities of a business and are essential to the functioning of the organization.  Examples are sales, production and service personnel.

A staff position supports the line positions, such as accounting and Human resources.

The closer that one is to the customer, the better chance your position will remain essential following a business combination.






---------- FOLLOW-UP ----------

QUESTION: Dear Brad

Thank you.

Can there be scenarios where mergers or acquisitions can take place between more than two companies  ?.

i.e. n > 2 where n = Company / Organisation / Corporate / Firm.

Example : n = 3

1. Company A is merged with Company B and Company C.

Company A is the Parent Co.

2. Company A acquires Company B and Company C.

Company A is the Parent Co.


In reality, Can this business transaction/s take place (n>2) ?.

i.e. 1 or 2 can also happen ?.

Or

Mergers and Acquisitions will always hold true for the equation n=2.


The following mentioned below are just hypothetical examples.

DaimlerChryslerAudi
MercedesBenzNissan
The Bank of Tokyo-Mitsubishi UFJ-HSBC Bank plc

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

Answer
In theory it's possible for a 3-way MERGER to occur simultaneously, but I am not aware of any.  To answer your question, YES it can occur.  It's more likely to occur serially, i.e., one after the other...

Of course, for an acquisition, there is no limit to the number of simultaneous transactions.  Take Google for example...  They buy dozens of companies every year.  There's no reason they couldn't close several transactions on the same day.  The only limit here is on the personnel to do the work...

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Brad Poulos

Expertise

I can answer any kind of general management question for a small or medium sized business. I have knowledge in legal, financial, operations, and business development/marketing issues in businesses ranging from 5 to 500 employees.

Experience

I have 15 years in progressively more senior positions at Telesat Canada. For the past 15 years I have been building small businesses and selling them. I sold my company in 2005 and became CEO of the parent company, which was publicly traded. I have been consulting and teaching college for the past five years, so i have been able to see many different clients' issues, and how to solve them.

Publications
Wireless Telecom Canadian Business

Education/Credentials
Associate Engineer - DeVry 1983 Master of Business Administration - Ivey Business School (University of Western Ontario) 1996

Past/Present Clients
Telesat Canada The Busholme Inn The Cataract Inn Gallery Metalworks Enable Training and Consulting

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