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5 Key Challenges HR Faces During M&A

Organizations often merge or acquire other businesses in order to expand into new markets, acquire new technology or reduce competition. A merger is when two companies become one and an acquisition is when one company acquires another.

Mergers and acquisitions (M&A) can help organizations become more efficient, profitable and powerful. For example, the merger between Exxon and Mobil helped both companies obtain a larger share of the gas and oil market. And the merger between Merck, a pharmaceutical manufacturer, and Medco, a distributor of pharmaceuticals, helped Merck gain an advantage in distributing its products.

But in the process of M&As, with all of the legal and financial issues to deal with, employees are sometimes ignored. Doing so can decrease morale and productivity and lead to an exodus of key talent.

Those in Human Resources face a number of challenges during a merger or acquisition. They include:

Identifying and communicating the reasons for the M&A to e...

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