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

Haryobimo Arief Alexander () and Mone Stepanus Andrias
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Haryobimo Arief Alexander: University of Indonesia, Faculty of Economics and Business
Mone Stepanus Andrias: University of Indonesia, Faculty of Economics and Business

A chapter in Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022), 2024, pp 1038-1048 from Springer

Abstract: 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.

Keywords: Case study; banking; Indonesia; internal communication; merger and acquisition; pay-to-stay (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-234-7_108

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