Major Challenges in Doing M&A – A Theoretical Approach

Thomas Straub
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Thomas Straub: University of Applied Sciences Western Switzerland

A chapter in More than Bricks in the Wall: Organizational Perspectives for Sustainable Success, 2010, pp 33-42 from Springer

Abstract: Abstract This theoretical paper develops a comprehensive research framework that bridges complementary perspectives and promotes a modern understanding of factors underlying M&A performance. Based on insights from the existing M&A literature, relevant determinants of firm performance are derived from each dimension of the model. For the dimension strategic management, the six strategic variables: market similarity, market complementarity, production operation similarity, production operation complementarity, market power, and purchasing power were identified having an important impact on M&A performance. For the dimension organizational behavior, the variables acquisition experience, relative size, and cultural differences were found to be important. Finally, relevant determinants of M&A performance from the financial field were acquisition premium, bidding process, and due diligence. It is argued that synergy realization, absolute performance and finally relative performance are three different ways in order to best measure post M&A performance.

Keywords: Mergers; acquisitions; performance; comprehensive model (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-8349-8945-1_3

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DOI: 10.1007/978-3-8349-8945-1_3

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