Merger and Acquisition Strategies

Merger and Acquisition Strategies

How to Create Value

New Perspectives on the Modern Corporation series

Angelo Dringoli

The decision to carry out a merger or acquisition is certainly a risky one, not least because of the number of variables influencing the final outcome. It is also a decision frequently based on the wrong objectives and an incorrect evaluation process. With this in mind, this important new book offers solutions for reducing the high percentage of mergers and acquisitions (M & As) that fail. It adopts a normative approach, using theoretical analysis to show what managers could and should do to increase shareholders’ value through successful M & A strategies. It also explores the conditions that are suitable for favouring a certain type of M & A (horizontal, vertical or diversified) over the others. In conclusion, the book presents case studies of successful M & A strategies providing a link between theory and practice.

Chapter 9: Organizational structures and procedures for implementing merger

Angelo Dringoli

Subjects: business and management, strategic management, economics and finance, industrial organisation


For synergies to be effectively produced, appropriate changes have to be carried out in organizational structures of firms involved in M & As. The focus of this chapter is on the choice of the organizational structure and procedures that allow the combined firm to obtain the desidered outcomes, according to different types of M & As. The fundamental choice to be made regards the level of integration and autonomy of companies involved in the merger. The level of integration indicates the degree to which functional activities are integrated across the merger firm, as part of then implementation of the acquisition. The level of autonomy measures the extent to which the acquirer delegates or defers to the target firm managers decisions to be made within target functional activities.

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