Employees of both the target and acquiring firms are likely to resist change following a takeover.

Question

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Employees may fear losing their jobs, changes to their job responsibilities or work environment, and uncertainty surrounding the new management and direction of the company. Resistance can manifest in various ways, such as decreased productivity, increased absenteeism, and even active attempts to sabotage the integration process. It is essential for the acquiring firm to address these concerns and communicate effectively with employees to ease the transition.

Employees of Both the Target and Acquiring Firms Are Likely