Evaluating the Efficacy of Mergers and Acquisitions

Competition is fierce, and companies must team up to survive in an industry where specialized knowledge is sovereign. One of the largest, most critical, and most difficult parts of a business merger is the successful integration of the enterprise networks of the merger partners. BPO Systems has the expertise and skills to make your merger or acquisition a much smoother process. An attempt has been made to draw the results of only some of the earlier studies while analyzing the causes of failure of majority of the mergers in this exploratory Research paper. Making the mergers work successfully is not that easy as here we are not only just putting the two organizations together but also integrating people of two organizations with different cultures, attitudes and mindsets. While making the merger deals, it is necessary not only to make analysis of the financial aspects of the acquiring firm but also the cultural and people issues of both the concerns for proper post-acquisition integration and to make the combination successful.

Merger and Acquisition Integration Model: A Practical Approach

This research aims to guide the merger and acquisition process for business practitioners in Asia. The research uses qualitative, descriptive analysis, and inductive approaches. This research is based on the samples of 20 transactions that have been performed in the last 25 years. The transactions involve companies from Indonesia, Malaysia, United States, United Kingdom, Japan, and Canada. The study proposes a merger and acquisition model with seven steps: determining the strategy, searching for the target, reviewing the target, confirmation and negotiation, transaction, and integrating into a business. The result of this study contributes to a new model of merger acquisition integration. The model will show the integration process in the financial services industry in South East Asia. The results support previous studies. The acquisition and integration model will assist the company's management in South East Asian countries to manage the merger integration process, especially in the financial industry. This research provides an integration model according to transactions in Asia in the financial service industry.

Post-acquisition integration and growth of farms: the case of Ukrainian agroholdings

This paper presents a dynamic perspective on the processes of farm restructuring following farm acquisitions by large-scale agroholdings in Ukraine. In particular, the paper employs a large dataset of farm-level data and several quantitative techniques to explore how the acquired farms’ resource bases are integrated after acquisitions and what outcomes an acquisition brings about for farm growth, profitability and productivity. In general, acquisitions positively affect farm growth and productivity while agroholdings use various resource allocation, resource redeployment and investment/divestment instruments for the post-acquisition integration of farms. The variation in achieving profitable post-acquisition growth of farms is contingent upon a number of farm pre-acquisition characteristics, strategic growth orientations and timing of acquisitions.

A Configurational Approach to Mergers and Acquisitions

The processes involved with mergers and acquisitions (M&As) are many, varied and complex. M&A research and practice needs a toolset that can apprehend that complexity and suggest ways forward. This paper shows the complexity of the constituents of organizations at a strategic level by building on the natural-resource-based view (NRBV) and the resulting competences and capabilities. In M&As, these resources and capabilities are managed through a variety of forms of acquisition integration comprised of sets of integration mechanisms. M&As occur in a range of strategic contexts and consequently many forms of integration are possible. Accordingly, there is a need for a mode of inquiry examining acquisition integration that can encompass a wide variety of forms, is holistic across a range of possible integration mechanisms and can provide insights. A configurational mode of inquiry can accommodate the complexity of the mechanisms, capabilities and resources, including natural resources, which constitute acquisition integration. A configurational approach emphasizes a holistic synthesis of elements and highlights the importance of thinking of M&As in terms of patterns. A configurational approach offers tools for considering M&As such as analyzing the thematic coherence of integration and enables the inclusion of sustainability into the logic of organizations.

Lessons on a novel integration approach of emerging market acquisitions in developed countries

PurposeThis paper constitutes an explorative study into post-acquisition implementation of emerging market acquisitions in developed countries. More specifically, the study aims to better understand how low capability Chinese firms are able to capture value when acquiring high-capability targets in developed countries through a novel post-acquisition integration approach. In so doing, we set out to contribute to the literature on, and managerial insights into, the factors that determine the success of emerging market acquisitions, in general, and the context-specific use of post-acquisition implementation approaches, in particular.Design/methodology/approachThe study follows a qualitative analysis and multiple case study design based on a phenomenon-based research approach. Data and information were collected through semi-structure executive interviews, observations, secondary sources, company report and media accounts.FindingsBased on institutional theory, this study develops a conceptual framework for a tacit value approach toward the integration of acquisitions of developed market targets by emerging market acquirers.Originality/valueThe proposed tacit value approach of post-acquisition integration, which refers to the creation of intangible value over time, differs from the explicit value approach that is associated with the transaction-cost literature and more focused on the creation of tangible value in the short-term.

Solving Post-acquisition Integration Failure from the Outside-in

In this article, we argue that post-acquisition performance can be improved by adding an outside-in business-level strategy to synergy-driven corporate-level strategy. Multinational companies (MNCs) frequently opt to accelerate new business development through the acquisition of innovative companies. We present an in-depth case study of an integration failure after a multi-million-dollar acquisition and also explore how the integration was eventually turned into a success. Initially, the synergies between the MNC legacy business and the acquired company do not play out as expected. As new business development stalls and important growth markets are missed, corporate value destruction occurs. As often happens, consultants are hired to fix the problem, but cannot turn the tide. Eventually, the MNC empowers key people inside the company and finds a way to solve the problem. The essence of the solution lies in deep, genuine, outside-in strategizing at the business level. In hindsight, the MNC suffered from corporate strategy myopia relying on high-level analyses and net-present value (NPV) calculations of potential synergies as a starting point for post-acquisition integration, instead of a clear, outside-in view of the strategic business model required to create value.

WHICH IS MORE IMPORTANT TO THE SUCCESS OF AN ACQUISITION; ACQUIRER OR TARGET RESOURCES?

The resources of both acquirers and targets have been studied in terms of the drivers and success of acquisitions. Despite the large number of studies that have been conducted, we still do not know whose resources are more critical to the success of acquisitions. This study aims to examine the role of acquirer and target resources in the success of acquisitions. All acquisitions that took place in Turkey between 1990 and 2017 were analyzed to investigate the research question. The findings of a regression analysis of 425 acquisitions in this emerging market context reveal that acquirer resources are more critical than target resources in acquisition performance. The effects of resources on domestic and international acquisitions are also compared, and it is found that acquirer resources are more critical in domestic acquisitions, whereas target resources are more important in international acquisitions. The implications of these findings are discussed in terms of information asymmetry and post-acquisition integration issues, and directions for future research are suggested.