Comparison of merger and acquisition (M&A) success in horizontal, vertical and conglomerate M&As: industry sector vs. services sector

Ziva Rozen-Bakher

The Service Industries Journal, 2018, vol. 38, issue 7-8, 492-518

Abstract: Due to the high failure rate of the merger and acquisition (M&A) strategy, this study raises the question of whether there is a difference between the types of M&A in relation to M&A success. The study presents a research model to examine how each of the types of M&As – horizontal, vertical and conglomerate – separately affect M&A success. The study compares between the industry sector and the services sector. The results show that horizontal M&As lead to integration success and synergy success in the industry sector, but in the services sector, it leads to a failure of the integration stage, and in the both sectors it hinders the profitability. Vertical M&As lead to a success only in relation to synergy in the services sector, while conglomerate M&As lead to integration success and synergy success in the both sectors, but without success in relation to the profitability in the both sectors.

Date: 2018
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DOI: 10.1080/02642069.2017.1405938

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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