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Major Challenges in Doing M&A – A Theoretical Approach

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More than Bricks in the Wall: Organizational Perspectives for Sustainable Success

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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.

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Authors and Affiliations

  1. School of Business Administration, University of Applied Sciences Western Switzerland, Fribourg

    Thomas Straub

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  1. Thomas Straub
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Straub, T. (2010). Major Challenges in Doing M&A – A Theoretical Approach. In: More than Bricks in the Wall: Organizational Perspectives for Sustainable Success. Gabler. https://doi.org/10.1007/978-3-8349-8945-1_3

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