MBA 699 10-1

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Southern New Hampshire University *

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MBA 699

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Business

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Feb 20, 2024

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10-1 Report Emilee Krenzien MBA-699: Strategic Opportunity Management Dr. Dale Deardorff Southern New Hampshire University January 4, 2024

1 10-1 Report Expected Outcome Based on previous notices and discussions it was expected that the primary buyer was going to drop out of the purchase agreement. The alternative buyer was extensively researched due to the probability of the primary buyer not purchasing the organization. From surveys and data collection done on a variety of mergers and acquisitions of outside organizations, it was expected that there would be some difficulty integrating the cultures and workforce of the two organizations. Employee attrition was expected to be at least 20% around the time of the acquisition announcement. It is normal for current employees to worry about their position and look to other companies for more job security. Financially, the organization was expected to see a decrease in revenue while merging the two companies into one. After a new standard for normal operations was established, the organization would see profitability again. Actual Outcome The actual outcome of the merger and acquisition was better than expected. While the primary buyer did not purchase the organization like originally planned, it was expected that the outcome was going to be using the alternative buyer. Since the organization had created a plan in the event of an alternate buyer, the purchase was still completed. A part of the acquisition that went better than expected was employee attrition. The stanard and generally seen attrition rate is around 20% in the months surrounding the acquisition. Our organization had an attrition rate of just 5%. While some employees still were not completely satisfied with their sense of job security, the change management plan has been effective enough to keep most employees secure in their positions. On the financial end of the acquisition, there was an expected dip in the profitability of the company. Although the company had an expected loss of income in the first quarter following the acquisition, the organization gained profitability faster than expected. The quick

2 turn around for profitability can be attributed to the amount of planning carried out through the acquisition process and the lower than expected employee attrition rate. The main problem area that could have been approached better or more thoroughly is making employees feel secure about their positions. It is never a good feeling to not know if the position a person is in with the company is secure or not. To better reassure employees that they felt secure during the acquisition, better communication could have been had. This better communication involves creating a plan and providing resources to support current employees. Learning From this acquisition, I have learned some skills that will help me with more mergers and acquisitions that come up along the way. These skills include different strategies to account for roadblocks and extensive planning. This acquisition experience has opened my horizons to Kotter’s change management strategy that aids in the best possible transition when executed correctly. While I was always aware that planning is a major part of one organization purchasing or partnering with another company, this experience has taught me how extensive the planning has to be to make the deal successful. This project has been my first project where the primary buyer has backed out of buying the organization I was working with while they were selling. There were notifications that allowed me to see the high potential of the primary buyer backing out, therefore I planned an alternative buyer. From here on out, I will be planning an alternative buyer even when the primary buyer seems perfect. I will also be using a guiding coalition for future projects. The guiding coalition was a great resource that helped organize, plan, and execute the acquisition. Because of their wonderful performance, more employees stayed with the company than expected and it only benefited the new, merged organization.

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MBA 699 10-1

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