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Can Resistance Transform the Villain? - A Case Study of the Impact of Resistance in a Hostile Takeover

Grubb, Hedda LU ; Larsen, Jonatan LU and Norrbohm, Hugo LU (2024) IBUH19 20241
Department of Business Administration
Abstract
This thesis examines post-acquisition resistance and its implications for post-merger integration (PMI) following hostile takeovers as this presents distinctive and intricate challenges within organizational change dynamics. Through a qualitative case study approach, this research investigates the interactions between a leading private equity firm, "Alpha", and a major multinational manufacturer, referred to as "Beta". The study delves into the pre-acquisition strategies employed by Beta to resist the takeover and the post-acquisition challenges that emerge as Alpha assumes control. By conducting interviews the research identifies key factors that shape post-acquisition resistance and examines their impact on PMI.

The results suggest... (More)
This thesis examines post-acquisition resistance and its implications for post-merger integration (PMI) following hostile takeovers as this presents distinctive and intricate challenges within organizational change dynamics. Through a qualitative case study approach, this research investigates the interactions between a leading private equity firm, "Alpha", and a major multinational manufacturer, referred to as "Beta". The study delves into the pre-acquisition strategies employed by Beta to resist the takeover and the post-acquisition challenges that emerge as Alpha assumes control. By conducting interviews the research identifies key factors that shape post-acquisition resistance and examines their impact on PMI.

The results suggest that the pre-acquisition resistance, fueled by strategic sensegiving efforts from Beta’s management, significantly influences the post-acquisition integration process, fostering sustained resistance and adaptation challenges. The resistance can be attributed to the target company's defensive tactics, inadequate communication strategies by the acquirer, strong organizational identity within the target company, information asymmetry, and misalignment between sensemaking and sensegiving. The study contributes to the literature on resistance in hostile takeovers by highlighting the crucial role of sensemaking and sensegiving in the emergence of employee resistance during the acquisition. Additionally, it offers practical insights that can be taken into consideration for acquiring companies that wish to mitigate said resistance and enhance the success of PMI. (Less)
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author
Grubb, Hedda LU ; Larsen, Jonatan LU and Norrbohm, Hugo LU
supervisor
organization
course
IBUH19 20241
year
type
M2 - Bachelor Degree
subject
keywords
resistance, hostile takeover, post-merger integration (PMI), sensemaking, sensegiving
language
English
id
9163420
date added to LUP
2024-06-19 16:36:46
date last changed
2024-06-19 16:36:46
@misc{9163420,
  abstract     = {{This thesis examines post-acquisition resistance and its implications for post-merger integration (PMI) following hostile takeovers as this presents distinctive and intricate challenges within organizational change dynamics. Through a qualitative case study approach, this research investigates the interactions between a leading private equity firm, "Alpha", and a major multinational manufacturer, referred to as "Beta". The study delves into the pre-acquisition strategies employed by Beta to resist the takeover and the post-acquisition challenges that emerge as Alpha assumes control. By conducting interviews the research identifies key factors that shape post-acquisition resistance and examines their impact on PMI. 

The results suggest that the pre-acquisition resistance, fueled by strategic sensegiving efforts from Beta’s management, significantly influences the post-acquisition integration process, fostering sustained resistance and adaptation challenges. The resistance can be attributed to the target company's defensive tactics, inadequate communication strategies by the acquirer, strong organizational identity within the target company, information asymmetry, and misalignment between sensemaking and sensegiving. The study contributes to the literature on resistance in hostile takeovers by highlighting the crucial role of sensemaking and sensegiving in the emergence of employee resistance during the acquisition. Additionally, it offers practical insights that can be taken into consideration for acquiring companies that wish to mitigate said resistance and enhance the success of PMI.}},
  author       = {{Grubb, Hedda and Larsen, Jonatan and Norrbohm, Hugo}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Can Resistance Transform the Villain? - A Case Study of the Impact of Resistance in a Hostile Takeover}},
  year         = {{2024}},
}