A Study on the Merger and Acquisition of Goliath Bank and David Bank

Strategizing Pay-to-Stay Approach and Internal Communication

DOI

10.2991/978-94-6463-234-7_108How to use a DOI?

Keywords

Case study; banking; Indonesia; internal communication; merger and acquisition; pay-to-stay

Abstract

Merger and acquisition have seemed to be a generally-accepted and expected business strategy for any firm to grow. It does offer a compelling potential for exponential business growth and ROI to the shareholders. It is interesting that up to 70% of the global merger and acquisitions failed miserably. The million-dollar investment that the management and shareholders expected to be returned positively, turns out, even in some cases, to be a huge cost and an apparent value-destroying decision. HR management issues are mostly the cause behind these failures, starting from as simple as misinformation to as profound as cultural integration failure. This case study investigated the strategies and implementation of compensation, talent placement, and internal communication in a merger and acquisition case of two multinational banks in Indonesia, and the case was dated back in 2018. To obtain valuable information and a better understanding of the overall picture of strategic planning, implementation, and best methods, triangulation was used in this study. This study solely used interviews for data collection methods and has conducted fifteen interviews clustered into three main categories- migrated employees, change agents, and consultants. The result of this study showed that these variables should not be left ignored, as it happened in many M&A cases. Not to mention that these variables are apparently the main component of how well M&A companies could be able to shift into full speed on productivity level after the integration process.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Haryobimo Arief Alexander
AU  - Mone Stepanus Andrias
PY  - 2023
DA  - 2023/09/29
TI  - A Study on the Merger and Acquisition of Goliath Bank and David Bank
BT  - Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
PB  - Atlantis Press
SP  - 1038
EP  - 1048
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-234-7_108
DO  - 10.2991/978-94-6463-234-7_108
ID  - Alexander2023
ER  -