Integration Process Post-Acquisition of Parsons Brinckerhoff by Balfour Beatty Rail

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the integration process of Balfour Beatty Rail's acquisition of Parsons Brinckerhoff in a holistic context. The main focus of the research is to assess the problem in the integration process and see how a visionary leadership can help Parsons Brinckerhoff provide the competitive edge to Balfour Beatty Rail in the infrastructure division. Secondary research methodology is used in this research. The study also provides the action learning program to implement the vision into action.

Table of Contents

CHAPTER 1: INTRODUCTION1

Background of the Study1

Purpose of the study3

Research Aims and Objectives4

Research Question4

Ethical Concerns5

Limitations of This Research6

CHAPTER 2: LITERATURE REVIEW7

Theoretical Framework7

Differences between Mergers and Acquisitions8

Cross-Border Acquisitions9

International Mergers and Acquisitions10

The Post-Acquisition Process11

Managers Actions in Acquisitions13

Integration of Human Resources in Acquisitions15

What is a shared vision?31

When is truly a shared vision?32

Action Learning40

Organizational Culture Part - Aligned To Strategic Vision53

Theory Summary56

CHAPTER 3: METHODOLOGY58

Research Design58

Literature Search60

Keywords Used61

CHAPTER 4: DISCUSSION AND ANALYSIS62

Action Learning Program64

1.Assessment of the values and objectives of Balfour Beatty and Parsons Brinckerhoff64

2.Developing a Shared Vision66

3.Communicating the Vision66

CHAPTER 5: CONCLUSION74

Success of the Acquisition74

Potential Pitfall and Drawback75

The Way Forward76

REFERENCES78

Chapter 1: Introduction

Background of the Study

In September 2009 the Parsons Brinckerhoff (PB) CEO recommended the shareholders to approve the acquisition of the company by Balfour Beatty Group. The two firms are seen as highly complementary, with PB greatly assisting in expanding Balfour Beatty's vision in becoming a global integrated leader in infrastructure services through the addition of world-class professional services capabilities. Client service will be a prime focus of the combined organization with no changes in project managers, technical staff and/or executive leadership with whom PB's clients work as a result of the acquisition.

Balfour Beatty Rail (BBR) is at the forefront of rail engineering throughout the World - Europe, Asia and America. The company provides the skill base to deliver multi-disciplinary railway projects from conception through to project close out. BBR's experience covers the design, construction and commissioning of infrastructure projects in main line, mass transit and light rail. Both the remodelling and upgrading of existing infrastructure is undertaken, together with the construction of new systems. In-house capabilities cover permanent way, overhead line electrification, power supply systems, telecommunications, mechanical and electrical engineering and signalling.

PB is present also into the rail industry, as a consultant company. Within UK, practically PB Rail and BBR were direct competitors regarding early stage, development work, otherwise known as consultancy stage. The main client within UK, Network Rail (NR), asked the BB Group to choose only one company to appear on their approved supplier ...