3 Review(s)

This unique book tells the story in human as well as management and economic terms of what happened in the Baxter Travenol-American Hospital Supply merger--one of the major corporate mergers of the late 1980s. The author, who was a senior executive at Baxter Travenol when the merger occurred, explores the definition of a strategic merger and presents practical data on the requirements to make a strategic merger successful. Specifically, he analyzes whether the new Baxter is more successful and more valuable than its two predecessor companies would have been on their own, what actions were taken or failed to be taken to contribute to that end, and what megamergers entail for executives, industry, and public policymakers. Based on extraordinary access to Baxter's top management, Cody offers a candid and comprehensive report on what went wrong and what went right, and offers some significant lessons to other companies involved in their own merger activities. After reviewing briefly the background of the two companies and the health-care industry, the author relates the events of the merger chronologically through the words and perceptions of the key participants. He describes in detail the actual execution of the merger, offering an unusual behind-the-scenes look at the organizational, personnel, compensation, communications, and control issues raised by the merger and its aftermath. He looks at the real impact of the merger on employees and provides an invaluable case study of executive decision-making under pressure. Among the issues explored in depth are the conflicts of culture and management style between the two companies, the reorganization process, the impact of the merger on the changing health-care environment, and the choice of corporate name and identity. Ideal as supplemental reading for courses in management and human resources, this book is also an important resource for consultants and executives who seek an in-depth, balanced account of the corporate merger process in action.