Merger

Introduction

Merging involves combining operations of two different entities into a single entity. The two entities voluntarily combine economically or financially for mutual benefit. If involuntary from one entities side, it becomes an acquisition rather than a merger (Honore & Maheia, 2003).

In making a non-technical infrastructure evaluation, one needs to examinetheexisting non-technical infrastructureand its effectiveness. Thiscoversareassuch as standardsapplied by entities, rulesandregulations, policiesand metadata. Thefindingsare thenreported. Improvementsormodifications on the nontechnical infrastructuregoingforwardare alsosuggested (Honore & Maheia, 2003). Questionsaskedincludewhetherthecultures of theentitiescorrelate, whethertheentities can be integrated, whetheroneknowsexactlywhatthey are buying, thebenefits of combiningtheentitiesandwhetherthemerger is at therightprice.

Facts that need getting straight in a merger include whether the merger is in line with the companies long term strategy, what exactly one is after from the other entity in terms aspects such as business contacts, economies of scale among others (Saggion & Funk, 2009). In getting this information, one can interview different levels of management and employees as well. One can also consult experts in various fields entailing the merger’s aspects. The role to be played by both businesses in this merger involves both companies stating out clearly their similarities in terms of organizational structure, external policy environment and business strategies. Technical Metadata will help in clarifying relationships and data lineage between the entities.

Conclusion

Mergers are a very sensitive transaction. Their success is crucial to a company’s future and failure is catastrophic. As such, they need careful evaluation to determine their viability. Both merging companies should be actively involved in laying out the facts.

 

References

Honore, R. A., & Maheia, M. W. (2003). The secret to a successful RIM merger or acquisition. Information Management, 37(5), 57.

Saggion, H., & Funk, A. (2009). Extracting opinions and facts for business intelligence. RNTI Journal, E (17), 119, 146.

 

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