Mergers and acquisitions (M & A) are a popular strategy used by businesses for many years, but the success of this strategy has been limited. In fact, several reviews have shown that on average companies to create little or no value through acquisitions. Although there was a significant amount of research on mergers and acquisitions, there seems to be little consensus on the reasons for the results of them are achieved. Here we start with reviewing some of the existing research on mergers and acquisitions … Read more »

Mergers and acquisitions (M & A) are a popular strategy used by businesses for many years, but the success of this strategy has been limited. In fact, several reviews have shown that on average companies to create little or no value through acquisitions. Although there was a significant amount of research on mergers and acquisitions, there seems to be little consensus on the reasons for the results of them are achieved. Here we start with reviewing some of the existing research on mergers and acquisitions, identifying the key variables, which have focused on the studies. We then summarize some of the most important works on a primary reason for the failure – to pay a high premium – and discuss why executives often long delay the sale of underperforming companies that have been acquired. In addition, we examine the research suggesting the importance of an acquisition based on organizational learning capability from the acquisitions and complementary science and technology for strategic renewal. Finally, we end with a discussion of the research on cross-border mergers and acquisitions, which figures prominently in recent years.
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from
Michael A Hitt,
David King,
Hema Krishnan,
Marianna Makri,
Mario Schijven,
Katsuhiko Shimizu
Source: Business Horizons
7 pages.
Release Date: 15, November 2009. Prod #: BH353-PDF-ENG
Mergers and acquisitions: Overcoming pitfalls, building Synergy and added value HBR case solution

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