Mergers And Acquisitions: Impact On Company Employees

Mergers and Acquisitions: Impact on Company EmployeesStudent NameCourseDateInstructorIntroductionMergers and acquisitions is the consolidation of companies. Merging and acquiring of companies is a major force in today’s economic environment, whose goal is to increase the market share, growth, and achieve domination. Merging or acquiring other entities provides the resultant company with more resources than previously owned. Increased resources enable the resultant company to compete economically by means of lowering their prices ergo attracting more customers. The process has positive and negative effects especially on the employees of the acquired company. Therefore, it is important for managers to analyze the impact of mergers and acquisitions as a way of complying with the current market demands. The paper analyzes the impact of mergers and acquisitions on company employees and designs steps that management can take to ensure a peaceful and effective transition to a new company. Review of Existing Literature: History and BackgroundThe process of mergers and acquisitions has grown historically through five evolutional stages. The evolution of mergers and acquisitions was triggered by economic factors such as growth in GDP, monetary policies, and interest rates