Abstract
D.Comm.
The purpose of this study was to build a comprehensive, holistic people integration process
model for people integration during mergers and acquisitions (M&As). M&As is a popular
and frequently used strategic initiative by organisations to grow their business. It has been
estimated that 80% of M&As are unsuccessful in producing any shareholder value. In many
cases lack of culture integration, a people aspect, is mentioned as one of the main reasons for
M&A failure. Poor people integration during M&As is thus a major cause of M&A failure
and motivated this research. The research objective was firstly, to build a model from current best practice in the M&A
field. In building this model (Model P) inputs were received during interviews from experts
and practitioners in the M&A field. The second research objective was to build a theoretical
model (Model T) based on an in-depth literature review. The third research objective was to
verify Model T with experts and practitioners in the M&A field. A questionnaire was
distributed to experts and practitioners in the M&A field. The findings from the verification
process were integrated with the findings from a comparison between Model T and Model P
and a final model (Model TP) was built. The last research objective was to apply Model TP to
two case studies in order to demonstrate the practical use of Model TP. The research process
was completed upon arriving at Model TP and illustrated its practical use in the M&A field. The overall conclusion in the study was that the main difference between Model T and Model
P turned out to be in the model design. Model T was based on an organic model design
whereas Model P had a linear design. An organic model design was also chosen for Model
TP. The reasons for choosing an organic model design were that this design emphasised the
complex interrelationships and dynamic tension of the building blocks within the people
integration model. That means that a change in any of the building blocks would impact on
the other elements of the model. The contents of the models, i.e. the actual building blocks of
the practice model and the theory model, were very similar. This implies that experts and
practitioners in the M&A field have the necessary knowledge of what a successful people
integration process entails. A comprehensive, holistic people integration process may not have
been documented academically, but practitioners do have the knowledge of effective
integration of people during M&As.