Success or Failure of Mergers and Acquisitions: Employees - The Ultimate Losers


R. Jayaprakash Reddy
A. Kondaiah Swamy


In the beginning of Mergers and Amalgamations the shareholders of the merging company may be benefited by getting some extra compensation from the absorbing company. In this process some of the employees either of the companies lose jobs. If the same activity goes well the shareholders of the new company or the absorbed company will be benefited. Even this actlvily foils due to different reasons again the employees will be affected. Thus in this activity of M&As the ultimate losers are employees. Therefore it is the duty of both the companies to compensate the affected employees properly. A systematic compensation package should be evolved with the knowledge of the employees' representatives before and after the exercise of M&As irrespective of the success or failure of the companies.