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Mergers and acquisitions (M&As) are increasingly becoming a strategy of choice for companies attempting to achieve and sustain competitive advantage. However, not all M&As are a success. In this paper, we examine the three main reasons highlighted in the literature as major causes of M&A failure (clashing corporate cultures, absence of clear communication, and employee involvement) in three Indian pharmaceutical companies, and we analyze the role played by the HR function in addressing them. Also, we discuss the importance of gaining the commitment and focus of the workforce during the acquisition process through employee involvement.
Bucking a national trend, Maryland mergers and acquisitions rose almost 25 percent in the first quarter of 2012 compared with the last quarter of 2011, with the increase largely driven by the biotechnology, pharmaceutical and medical sector. According to data compiled by Bloomberg Financial exclusively for The Daily Record, 55 deals closed in the first three months of the year, compared with 45 during the fourth quarter of 2011 and 68 in the first quarter of 2011.
While mergers and acquisitions in Maryland fell 31 percent from the previous quarter and 40 percent from the corresponding period last year, one local company has continued to make nine-figure deals. Hunt Valley-based Sinclair Broadcast Group Inc. acquired Irvine, Calif.-based Freedom Communications' television division for $385 million. The acquisition includes eight stations and gives Sinclair ownership of two television stations each in the West Palm Beach, Fla., and Albany, N.Y., markets.
Like many other economic indicators, Maryland's mergers and acquisitions market is at the mercy of uncertainty on Wall Street and Capitol Hill and over who will be in the Oval Office come January. There are some very large, short-term events creating a lot of uncertainty," said Larry A. Davis, partner and founder of Aronson Capital Partners, a Rockville-based merger and acquisition advisor. "The election, the threat of sequestration, tax issues -- these things are putting an extra damper on the market.
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