Abstract

In 2020 TRX Industrial (TRX) was close to finalizing its acquisition of Wilson Technology Group (Wiltec).  About six months earlier, Brad Hunter, TRX Chief Operating Officer, had been appointed head of the acquisition integration steering committee.  Hunter was planning for a one-day session with a team set up to examine the post-merger structure for TRX and Wiltec.  One of Hunter’s objectives for the session was a decision about how much organizational autonomy, if any, would be retained by Wiltec.  Wiltec could retain its independence and continue to operate much as it had before the acquisition.  At the other end of the spectrum was absorption – Wiltec would be folded into TRX culture and operating processes and give up its autonomy.  Wiltec and TRX could also seek to take the best of both firms in terms of culture, processes, and people and create something new.

Teaching
The case is designed to address various questions about merger integration. Once an acquisition is completed, the acquirer must decide how to integrate the acquired company. This case deals with integration from the perspective of the post-merger (or post-acquisition) end state. TRX, the acquirer, must decide on the degree of autonomy that Wiltec, the acquired firm, will maintain once the deal is done. TRX is paying a significant premium so there will have to be additional value created to justify the acquisition price. The case provides a setting for a discussion about the various options for combining two companies after an acquisition.

Learning objectives are:
1. To discuss merger integration challenges
2. To understand the concept of post-merger end state
3. To examine the challenge when the acquirer and acquired firm have different cultures
Case number:
A08-20-0014
Case Series Author(s):
Andrew C. Inkpen
Subject:
General Management
Year:
Setting:
USA
Length:
5 pages
Source:
General Experience