Post-merger integration process in Japanese M&A: The voices from the front-line

2008 ◽  
pp. 71-92 ◽  
Author(s):  
Vladimir Pucik
Keyword(s):  
Integration Process ◽  
Front Line ◽  
Post Merger Integration ◽  
Merger Integration

The Integration Journey: An Attention-Based View of the Merger and Acquisition Integration Process

2005 ◽  
Vol 26 (10) ◽  
pp. 1501-1528 ◽  
Author(s):  
Jisun Yu ◽  
Rhonda M. Engleman ◽  
Andrew H. Van de Ven
Keyword(s):  
Healthcare System ◽  
Merger And Acquisition ◽  
Ethnographic Study ◽  
Vicious Cycle ◽  
Integration Process ◽  
Senior Managers ◽  
Acquisition Integration ◽  
Post Merger Integration ◽  
Merger Integration

This paper reports findings from an eight-year ethnographic study of the integration process in a large healthcare system formed in a 1994 merger. We examine the post-merger integration process by analyzing the relative amounts of time that senior managers in one unit of this organization spent discussing various integration topics and issues in their bi-weekly meetings from 1995 to 2002. We also describe the different patterns observed when managers addressed topics in their meetings related to internal unit integration versus integration with other parts of the organization. Finally, we identify a vicious cycle of repeated conflicts in how organizational members made sense of issues that emerged during the post-merger integration journey.

scholarly journals M&A successes: Breadth, depth, and deal completion time in the US semiconductor industry

2021 ◽  
pp. 234094442199805
Author(s):  
Taewoo Roh ◽  
Jieun Hwang ◽  
Byung IL Park
Keyword(s):  
Mergers And Acquisitions ◽  
Technological Innovation ◽  
Completion Time ◽  
Semiconductor Industry ◽  
Jel Classification ◽  
Integration Process ◽  
The Us ◽  
Post Merger Integration ◽  
Deal Completion ◽  
Merger Integration

Most previous studies examining M&As (mergers and acquisitions) have focused on the post-merger integration process. While there have been studies that have partially investigated the importance of deal completion, we argue that firms could learn to increase their deal completions by leveraging their experience from prior successful acquisitions and that their cumulative success could reduce the deal completion time; that is, the time from the announcement of the deal to its resolution. To address this unexplored issue about M&As, we investigated whether prior intra- and/or inter-industry acquisition experiences helped accelerate subsequent focal acquisitions in the semiconductor industry, which is characterized by rapid technological innovation. We tested our hypotheses on data consisting of 323 acquisition deals in the US semiconductor industry between 2000 and 2013. The results showed that both prior intra- and inter-industry acquisition experiences significantly reduced deal completion time. JEL CLASSIFICATION M10

scholarly journals The Role of Occupational Identification During Post-Merger Integration

2016 ◽  
Vol 43 (2) ◽  
pp. 207-244 ◽  
Author(s):  
David P. Kroon ◽  
Niels G. Noorderhaven
Keyword(s):  
Organizational Identification ◽  
Survey Design ◽  
Qualitative Interviews ◽  
Future Research ◽  
Integration Process ◽  
Future Research Directions ◽  
Post Merger Integration ◽  
Merger Integration ◽  
Positive Effect

Integration processes after mergers are fraught with difficulties, and constitute a main cause of merger failure. This study focuses on the human aspect of post-merger integration, and in particular, on the role of occupational identification. We theorize and empirically demonstrate by means of a survey design that employees’ identification with their occupation is positively related to their willingness to cooperate in the post-merger integration process, over and above the effect of organization members’ organizational identification. This positive effect of occupational identification is stronger for uniformed personnel but attenuates in the course of the integration process. Qualitative interviews further explore and interpret the results from our statistical analysis. Together, these findings have important practical implications and suggest future research directions.

scholarly journals Empirical research on mergers’ leverage dynamics and post-merger integration duration

2019 ◽  
Vol 45 (10/11) ◽  
pp. 1488-1507
Author(s):  
Yao Cheng
Keyword(s):  
Capital Structure ◽  
Integration Process ◽  
Content Type ◽  
Acquiring Firms ◽  
Integration Period ◽  
Target Firms ◽  
Empirical Tests ◽  
Post Merger Integration ◽  
Merger Integration ◽  
Leverage Dynamics

Purpose The purpose of this paper is to examine the effects of the post-merger integration duration on acquiring firms’ leverage behavior before and after a merger, using a dynamic model in which full merger benefits cannot be consumed at the instant of a merger, but rather after a pre-specified post-merger integration period. Design/methodology/approach This paper presents a dynamic model and empirical tests that describe the impact of the post-merger integration period on the capital structure dynamics of the acquiring and target firms prior to a merger and during the post-merger integration period. By incorporating costs associated with the post-merger integration period, the model can provide new implications for the leverage behavior around the merger. Findings Empirical tests support the model implications by showing that the longer the expected post-merger integration process, the less likely the acquirer will structure the financing of the combined firm in a manner that increases firm leverage. Since integration takes time to complete, an acquirer tends to retain financial flexibility during the integration process by assuming lower levels of debt when determining the capital structure of the merged entity. Originality/value The model generates new implications related to acquiring firms’ leverage dynamics along with the method of payment choice. The analysis of the duration of the post-merger integration period extends both the theoretical and empirical literature that tacitly assumes that the merger-related synergy is realized immediately at the merger date. This is the first model in the literature that assumes that both the acquiring and the target firms can change their capital structure overtime, which allows us to analyze both the financing structure and the merger timing. Previous empirical studies also ignore the integration period in the analysis of the method of payment choice and leverage behavior around mergers. The model in this paper can be extended along a number of dimensions.

How post-merger integration duration affects merger outcomes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joon-Hee Oh ◽  
Wesley J. Johnston
Keyword(s):  
Experimental Research ◽  
Organizational Support ◽  
Cost Effective ◽  
Integration Process ◽  
Content Type ◽  
Effective Expansion ◽  
New Finding ◽  
Cost Efficient ◽  
Post Merger Integration ◽  
Merger Integration

Purpose This study aims to confirm earlier findings that differences between merger and acquisition (M&A) participant firms are a hurdle for successful mergers and shows that merger outcomes can also be affected by the post-merger integration duration (PMID). Design/methodology/approach Experimental research on distinct cultures developed within experimental pre-merger subject groups is used to compare pre- and post-integration performances. Findings This study finds that firm distance (i.e. inherent differences between pre-merger firms) negatively influences merger success; no significant relationship between firm distance and PMID exists and PMID is positively related to merger success. Specifically, a slower integration minimizes conflicts between merger partners, enhances trust-building and reduces the disruption of existing resources and processes in both firms, which may benefit M&As. By contrast, a fast integration that shortens the overall integration process may discourage the combined entity from recognizing the intended synergy quickly. Research limitations/implications The new finding that PMID can affect merger outcomes invites empirical validation. This study presents experimental evidence that prolonged, well-structured post-merger integration may compensate for the negative time-variant issues associated with PMID. Practical implications Organizational support for collaborative learning between professional members should be a strategic consideration for firms so that acquiring business capabilities can be more natural and cost-efficient than building internal capabilities despite possibly slowing down the integration process. Encouraging a transfer of technical and client knowledge between the combined members can create value and understand differences in both the form and content of each firm’s knowledge base and the pre-existing mechanisms for sharing knowledge. It may lower the level of resistance in knowledge transfer. Originality/value While M&As may better facilitate the cost-effective expansion of business offerings than building capabilities internally, they can require considerable time, preventing many firms from realizing their intended outcomes. Nevertheless, less attention has been focused on PMID and its influence on M&As. This study is the first to use experimental research to examine the effects of PMID on merger success.

Marriage for better or for worse? Towards an analytical framework to manage post-merger integration process

2015 ◽  
Vol 21 (4) ◽  
pp. 857-887 ◽  
Author(s):  
Aihie Osarenkhoe ◽  
Akmal Hyder
Keyword(s):  
Growth Strategy ◽  
Three Dimensions ◽  
Integrative Model ◽  
Integration Process ◽  
Entry Modes ◽  
Dyadic Relationship ◽  
Content Type ◽  
Research Traditions ◽  
Post Merger Integration ◽  
Merger Integration

Purpose – A review of extant literatures shows that most mergers fail during the integration process. Little is known about how the realization of operating synergies and dissemination of available know-how in the merged firm are managed in the post-merger phase. The purpose of this paper is to provide insights on the process of integrating operating synergies by focusing on the critical success factors that facilitate integration of the skills of merged banks. Design/methodology/approach – The authors draw on three research traditions in merger literature and reconcile them with three dimensions of integration. In-depth interviews were conducted with Nordea managers from four Nordic countries. Findings – Having learned from the mistakes of previous mergers, Nordea’s “guiding star” for managing its post-merger integration process was expressed as focus, speed and performance from top management. A hands-on leadership style, vision-led thinking, a bias for action, involvement of the entire staff, continuous focus on customers, open and honest communication with employees are critical to success. Practical implications – The motive for a merger has an important impact on the degree of interaction and degree of integration. The authors expand on previous findings by, among other things, synthesizing three theoretical lenses into an integrative model, and addresses post-merger issues with a sharp eye towards clear managerial relevance. Originality/value – The authors respond to the call to expand inter-firm relationships study beyond the narrow dyadic relationship focus and not solely conceptualize mergers as one of companies’ entry modes to implement mechanistic growth strategy. The three dimensions of integration imbued with three research traditions in merger literature provides us with a conceptual lens to conceive mergers also as engines for change emerging from the merged firms to enhance a bespoke performance of their business process.

Five essentials for successful merger integration: what the aerospace and defense industry knows

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeffrey M. Voth
Keyword(s):  
Large Scale ◽  
Current Knowledge ◽  
Primary Data ◽  
Integration Process ◽  
Content Type ◽  
Primary Data Analysis ◽  
Post Merger Integration ◽  
Merger Integration ◽  
Aerospace And Defense

Purpose This paper aims to offer an original analysis of how three of the largest aerospace and defense (A&D) companies equipped their organizations for merger integration success. Design/methodology/approach Through a multi-case study, this paper explores the post-merger integration process for large-scale transactions completed over a 25-year period. Semi-structured interviews were conducted with industry executives and leading management consultants. The process involved collection of primary data, analysis of secondary data drawn from publicly available company documents and identification of key factors that led to success. Findings Five interdependent success factors (Figure 1) support integration teams and capture deal value. Managing the process as a megaproject further facilitates the effectiveness of post-merger integration, enabling leaders to remain laser-focused on integration activity while driving toward a long-term vision for the newly formed organization. Practical implications Merger integration has been identified as a primary source of deficiency that prevents acquirers from achieving anticipated results, negatively affecting merger success. Based on the findings of this paper, firms are more likely to create a compelling long-term value creation agenda when five essential factors are combined with a megaproject approach to manage the post-merger integration process. Originality/value This study advances current knowledge in the field by responding to requests to further explore the dimensions of merger integration that facilitate success and improve shareholder value, contributing new data to inform extant theories regarding merger integration and megaproject management and adding to the limited research on post-merger integration within the A&D industry.

Sign in / Sign up

Export Citation Format

Share Document