Cross-border Mergers and Acquisitions in the Context of Perception of the Factors of Their Implementation in the Pre- and-Post-Merger-and-Acquisition Process

Cross-border mergers and acquisitions enable creation of business synergies, gain economies of scale, reduce costs, increase market power and create competitive superiority. The aim of this contribution is therefore to identify and specify the key determinants of implementation of the pre-merger-and-acquisition process (based on analyses of the views of managers from 120 companies) and to verify the new original methodology – ante-Determinants of Mergers and Acquisitions (aDM&A). A factor analysis of the data collected (by means of principal component analysis and varimax rotation) allowed extraction of four key determinants of implementation of the pre-merger-and-acquisition process. The paper also presents the basic parameters of the methodology aDM&A (eigenvalues, percentage of variance explained, Cronbach’s alpha, inter-correlations of the extracted factors), and the results of the analysis of differences in assessment of the extracted factors by managers. Keywords: Cross-border mergers, cross-border acquistions, pre-merger management, pre-acqusition management, methodology aDM&A.

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Effects of Cross-border Merger and Acquisition on the Operational Risk of US and Canadian Companies

Global Business Review ◽

10.1177/0972150919895092 ◽

2020 ◽

pp. 097215091989509

Author(s):

Bruno Lopes de Paula ◽

Daiana Paula Pimenta ◽

Ricardo Limongi França Coelho ◽

Jaluza Maria Lima Silva Borsatto ◽

Rafael Manoel de Oliveira

Keyword(s):

Decision Making ◽

Panel Data ◽

Mergers And Acquisitions ◽

Emerging Economies ◽

Operational Risk ◽

Merger And Acquisition ◽

Emerging Countries ◽

Cross Border ◽

The World ◽

The Relationship

The integration of the world economies is responsible for an increase in the number of cross-border mergers and acquisitions (M&A), together with the growing participation of companies from emerging countries in this type of investment. However, the area studies focus their analyses on the determinants, antecedents and profitability of the companies, leaving the effects of this type of business on the operational risk of the companies involved as a gap to be explored. To fill it, we used panel data regressions to identify the relationship between cross-border M&A and the operational risk of companies. The results indicate that acquiring companies based in emerging economies are the ones that suffer the most significant impacts on this type of business. As the implication, this study serves as a basis for the decision-making of the managers of the acquiring companies, being able to identify the risks of this activity and the ways of preventing them.

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Cross-Border Bank Mergers and Acquisitions: What Factors Pull and Push Banks Together?

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091513500227 ◽

2013 ◽

Vol 16 (04) ◽

pp. 1350022 ◽

Cited By ~ 3

Author(s):

Dongyun Lin ◽

James Barth ◽

John Jahera ◽

Keven Yost

Keyword(s):

Mergers And Acquisitions ◽

Banking Sector ◽

Bank Regulation ◽

Merger And Acquisition ◽

Bank Mergers ◽

Regulatory Factors ◽

Cross Border ◽

Country Specific ◽

Unique Dataset

This paper evaluates factors that encourage or impede cross-border mergers and acquisitions in banking. The effects of bank specific features, as well as bank regulatory factors, from both target and acquiring banks' perspectives, are estimated. Three comprehensive databases are combined to provide a unique dataset to study cross-border merger and acquisition activities of banks. Banking sector regulatory variables included make this study among the first to empirically and comprehensively analyze the interrelationship between bank regulation and cross-border bank mergers and acquisitions. The results indicate that both bank characteristics and country specific characteristics are important determinants of banks' cross-border merger and acquisition activities.

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Cross-Border Mergers and Acquisitions as a Challenge for Sustainable Business

Sustainability ◽

10.3390/su11113130 ◽

2019 ◽

Vol 11 (11) ◽

pp. 3130 ◽

Cited By ~ 2

Author(s):

Jaroslava Hečková ◽

Róbert Štefko ◽

Miroslav Frankovský ◽

Zuzana Birknerová ◽

Alexandra Chapčáková ◽

...

Keyword(s):

Mergers And Acquisitions ◽

Merger And Acquisition ◽

Sustainable Business ◽

Cross Border ◽

European Area ◽

The Future ◽

Basic Parameters ◽

Research Gap ◽

The Subject ◽

Variance Explained

When considering the challenges for sustainable business, companies implementing cross-border reallocation of capital by means of mergers and acquisitions should take into account the context and evaluation of attributes of their future implementation. The main aim of the paper is, therefore, to identify and specify the key attributes of sustainable cross-border mergers or acquisitions (M&As) influencing the considerations about their future implementation. On the basis of the views of managers from 120 companies (international corporations selected from the Zephyr database) located in 45 countries within the European area that had previously been the subject of a cross-border merger or acquisition, significant attributes were extracted in connection with their experience from their implementation. These attributes are taken into account when considering the implementation of a cross-border merger or acquisition in the future. A factor analysis of the data obtained allowed the extraction of three key attributes of implementation of a potential merger and acquisition process as an important tool of business sustainability—aims, concerns, and reasons. This paper further presents the basic parameters of the Attributes of Future Mergers and Acquisitions (AFM&A) methodology: eigenvalues, Cronbach’s alpha values, the percentage of the variance explained, inter-correlations of the extracted factors, and the results of an analysis of differences in the assessment of the extracted factors by managers. At the same time, no statistically significant differences were found in the assessment of the extracted merger and acquisition assessment factors. The study fills in the research gap in the area by identifying and specifying the attributes of considering the future implementation of M&A management in terms of the broader concept of this issue.

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Cultural Integration in Mergers and Acquisitions

Handbook of Research on Corporate Restructuring and Globalization - Advances in Business Strategy and Competitive Advantage ◽

10.4018/978-1-5225-8906-8.ch005 ◽

2019 ◽

pp. 101-124

Author(s):

Asli Goksoy

Keyword(s):

Organizational Change ◽

Literature Review ◽

Mergers And Acquisitions ◽

Success Rate ◽

Merger And Acquisition ◽

Cultural Integration ◽

Acquisition Process ◽

Corporate Strategies ◽

Culture Integration ◽

Change Efforts

Mergers and acquisitions (M&As) are recognized as one of the most popular corporate strategies in recent years. Unlike its popularity, the success rate of mergers and acquisitions is surprisingly low. There are many reasons for failure, but among all, culture integration has emerged as one of the major barriers to an effective merger and acquisition deal. This chapter highlights the fundamentals of this topic with literature review and presents practical and effective guidelines for facilitating cultural integration in merger and acquisition process effectively and efficiently and achieving greater results from the organizational change efforts.

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Thinking about people in mergers and acquisitions processes

International Journal of Manpower ◽

10.1108/ijm-05-2018-0143 ◽

2019 ◽

Vol 40 (4) ◽

pp. 643-657 ◽

Cited By ~ 2

Author(s):

José-Luis Rodríguez-Sánchez ◽

Marta Ortiz-de-Urbina-Criado ◽

Eva-María Mora-Valentín

Keyword(s):

Resource Management ◽

Mergers And Acquisitions ◽

Human Resource Management ◽

Human Resource ◽

Merger And Acquisition ◽

Management Model ◽

Content Type ◽

Acquisition Process ◽

Integration Stage

Purpose The purpose of this paper is to propose a human resource management model for the integration stage of mergers and acquisitions (M/A) process with four key factors: leadership and integration team; change and restructuring process; human resources (HR) resistance; valuable HR retention. Design/methodology/approach The authors analyze a case study of a multinational company that operates in the mechanical engineering sector. Findings The results show the special importance of human resource management in the success of the merger and acquisition process. And, the main actions implemented in HR contributing to the success of this process are identified. Research limitations/implications Subsequent investigations could conduct similar analyses for the planning and implementation stages of the merger and acquisition process, with the objective of presenting a complete HR management model in merger and acquisition processes. Practical implications The case study allows researchers to learn from professionals and business leaders while also offering a theoretical model that can help managers make decisions and improve the management of these processes. Originality/value The main contribution of this study has been to observe how HR are managed in the integration stage of M/A.

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Relationship between Cross-Border Mergers and Acquisitions and International Trade: The Case of Russian Pharmaceutical Industry

Экономическая наука современной России ◽

10.33293/1609-1442-2020-1(88)-81-94 ◽

2020 ◽

pp. 81-94

Author(s):

Alexandra V. Chugunova ◽

Olga A. Klochko

Keyword(s):

International Trade ◽

Mergers And Acquisitions ◽

Volume Growth ◽

Pharmaceutical Products ◽

Pharmaceutical Companies ◽

Cross Border ◽

Export Volume ◽

Relationship Of ◽

Geographical Diversification ◽

The Relationship

This research studies the relationship of cross-border mergers and acquisitions to international trade through the lens of Russian pharmaceutical market. To this aim, the study analyses the woks of foreign economists dedicated to evaluating the link between foreign direct investment and international trade, and the influence of mergers and acquisitions on countries’ export and import flows. The research also presents a correlation analysis between the volume of Russian pharmaceutical exports and imports and cross-border deals performed by foreign pharmaceutical companies in Russia. We characterize these deals and conduct a comparative analysis of the regional structure of Russian pharmaceutical exports and imports as well as of the countries of origin of buyers in cross-border mergers and acquisitions. The results of the analysis indicate a positive relationship between cross-border mergers and acquisitions and Russian pharmaceutical exports, which is reflected in the export volume growth and its geographical diversification. However, it is outlined that particular problems of the industry hinder the amelioration of Russian positions in international exports. Similarly, the relationship between cross-border deals and Russian imports is positive: the major pharmaceutical products supply flow occurs from the countries of origin of buyers in cross-border mergers and acquisitions conducted in the Russian pharmaceutical sector.

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