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Reasons for Frequent Failure in Mergers and Acquisitions

A Comprehensive Analysis

  • Authors
  • Thomas Straub

Table of contents

  1. Front Matter
    Pages I-XIV
  2. Thomas Straub
    Pages 1-13
  3. Thomas Straub
    Pages 15-62
  4. Thomas Straub
    Pages 103-140
  5. Thomas Straub
    Pages 141-181
  6. Thomas Straub
    Pages 183-193
  7. Back Matter
    Pages 195-227

About this book

Introduction

Despite the goal of performance improvement, results from mergers and acquisitions (M&A) are often disappointing. Numerous empirical studies show high failure rates of M&A deals. Studies are mostly focused on individual determinants. The literature therefore lacks a more comprehensive framework that includes different perspectives.

Using four statistical methods, Thomas Straub shows that M&A performance is a multi-dimensional function. For a successful deal, the following key success factors should be taken into account:
• Strategic logic which is reflected by six determinants: market similarities, market complementarities, operational similarities, operational complementarities, market power, and purchasing power.
• Organizational integration which is reflected by three determinants: acquisition experience, relative size, cultural compatibility.
• Financial / price perspective which is reflected by three determinants: acquisition premium, bidding process, and due diligence.
All 12 variables are presumed to affect performance either positively or negatively. Post-M&A performance is measured by synergy realization, relative performance (compared to competition), and absolute performance.

Keywords

Acquisition Firmenübernahme Fusionen PLS Post-M&A

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-8350-9637-0
  • Copyright Information Gabler Verlag | Springer Fachmedien Wiesbaden GmbH, Wiesbaden 2007
  • Publisher Name Deutscher Universitätsverlag, Wiesbaden
  • eBook Packages Business and Economics
  • Print ISBN 978-3-8350-0844-1
  • Online ISBN 978-3-8350-9637-0
  • Buy this book on publisher's site
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