Amit Tripathy , N.M. Leepsa
Economic Times (ET) Cases, Times of India Group, Case Clearing House
Publication year: 2018

Abstract

*ET CASES – VGSOM’S CASE AWARD FOR BEST CASE IN CORPORATE FINANCE at International Conference on Financial Markets and Corporate Finance (ICFMCF 2017), 7th & 8th July 2017, VGSOM, IIT Kharagpur


This case study on the deal between Axis Bank (a private sector bank) and Enam Securities (a division of an investment bank) enables the participants/readers of the case to understand the importance of post-merger staff integration as a key for success/failure of the deal. This deal is unique in its own way as it was marked as a congeneric merger between banking giant and an investment banker. Every company has its own set of code of conduct and hence will have a different organizational culture. These terms are sometimes overlooked during the deal structuring process, which later on proves to be fatal and leads to the downfall of the business. Neglecting this core issue sometimes leads to loss of the common objective that persuaded the deal in the first place. The reasons are quite obvious as the merger of two firms with completely different working environments will result in resistance to change if the employees of the target firm are forced to adopt the working culture of the acquiring company. Contrary to it, this case proposes an example where two firms with similar working cultures collaborated and this marked as the key to the success of the merger.

Pedagogical Objectives

  • To understand and analyze the current business dynamics of the banking industry in India
  • To study the impact of regulatory approvals on the deal process
  • To examine Axis Bank’s competitive strategy through SWOT analysis
  • To inspect, how post-merger integration can be a driving force behind the success of any merger deal

Case Positioning and Setting

This case study can be used in MBA Program/Executive MBA/BBA in the following courses and topics:

  • Corporate Restructuring Course – Mergers & Acquisitions
  • Strategic Management Course – Expansion Strategy, Mergers & Acquisitions, SWOT analysis, Business Models, Competitive Strategy