Cap Gemini Ernst & Young (A): A Global Merger

Case | HBS Case Collection | December 2002 (Revised February 2005)

Cap Gemini Ernst & Young (A): A Global Merger

Abstract

French IT consulting giant Cap Gemini is poised to purchase the consulting arm of Ernst & Young, a U.S.-based Big 5 accounting firm. In doing so, many differences need to be resolved, including negotiating with Ernst & Young entities all over the world as well as converting Ernst & Young partners into employees of publicly held Cap Gemini. Amidst all of the decisions, the market for IT consulting services is changing rapidly, further complicating the merger negotiations and implementation. Teaching Purpose: To study the range of issues that must be considered and resolved in negotiating a professional services firm merger, the valuation and motivational challenges associated with merging a private entity into a public entity, and the challenges of negotiating a cross-border merger.

Keywords: Negotiation; Multinational Firms and Management; Mergers and Acquisitions; Cross-Cultural and Cross-Border Issues; Information Technology Industry; Consulting Industry; France;

Format: Print

21 pages

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Citation:

Nanda, Ashish, Bertrand Moingeon, Lisa Haueisen Rohrer, and Guillaume Soenen. "Cap Gemini Ernst & Young (A): A Global Merger." Harvard Business School Case 903-056, December 2002. (Revised February 2005.)

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Cap Gemini Ernst & Young (A): A Global Merger

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