Surviving and succeeding during mergers and consolidations.

Mergers and acquisitions are occurring at a feverish pace throughout U.S. business. Even firms that are not seeking to grow through acquisition are making defensive moves--internal reorganizations that involve cutting out entire layers of management or divesting whole divisions--to raise stock prices in hopes of fending off unwanted takeover bids. Mergers and reorganizations are especially prominent in the health care industry. The push for cost containment enhances the attractiveness of perceived synergies to be gained through combination. Moreover, the specter of an industry shake out prompts executives to adopt an "eat or be eaten" mentality.