Companies can avoid challenges related to mergers and acquisitions by factoring in the following:

• Companies should communicate clearly, consistently and effectively to all their employees. Employees need to be informed in case of any horizontal or vertical shift within the organization so that they are prepared in advance and welcome the change

• Companies must try and avoid laying off people, infact they should find a way to leverage the potential that sits with them. In case lay offs are unavoidable, companies must make it a point to acknowledge the contributions of employees who are being laid off or assist in finding alternative employment

• During a merger, companies can take the help of business experts or HR advisors who can help them in not only managing their financial resources but also ensure that the human resources of the company are managed effectively

• A merger and acquisition must comprise of a pre-merger process where companies conduct due diligence on the operational and financial data and a post merger process wherein organizations need to deal with sudden increase in market share and information systems

• It is important for merging companies to set up a list of guiding principles. These guidelines can help the two companies work together more efficiently and ensure that the two organizations are moving in the same direction. Shared vision is extremely essential in order to achieve common goals. Daimler Chrysler is an example of a company which failed to establish proper guidelines. This led to troubles right from the beginning of the merger

• During mergers and acquisitions, along with employers and customers, companies must pay attention to the stakeholder groups. Stakeholders must receive clear communication about the transaction

• Post the merger, companies must careful about the information they impart in the public domain about the outcome of the merger. To avoid any unpleasant circumstances, companies must give clear guidelines to all its employees regarding the information that can be disclosed to the clients/ consumers as well as the media and the information that needs to be held back until the top management decides to disclose it

• Companies have to face greater challenges post the merger. It is at this stage wherein companies get tested as to whether they can manage to successfully integrate the cultures of the two companies. According to a research that included the participation of 115 companies across the globe, 58% of the mergers fail. Out of this 30% fail in the pre merger stage and 70% of them fail in the post merger stage. The post merger activity is important to understand the significant aspects of the target business

• During the post merger process, it is important for companies to clearly define the organizations goals and expectations, share information openly and encourage employees to participate and adapt to the merger