Acquisition Premiums, Subsequent Workforce Reductions And Post-acquisition Performance

摘要

In the merger and acquisitions (M&A) process, the acquiring firm frequently pays large premiums and engage in large scale workforce reductions. On the other hand, the merged firm must create adequate synergy to produce returns that exceed the premium paid and workforce reductions to gain economies and reduce costs.rnThough the payment of premiums is often justified by the manager, human capital costs are often among the easiest to reduce, particularly in the short term. The present study tries to suggest that in related acquisition, workforce reduction serves as a partial mediator of the relationship between premiums paid and post acquisition performance.rnThree hypotheses have been stated to analyze the relationship between workforce reductions and the relationship between premium and post acquisition performance.