Table of Contents

Handbook of Research on Mergers and Acquisitions

Handbook of Research on Mergers and Acquisitions

Elgar original reference

Edited by Yaakov Weber

For the last four decades, researchers in various disciplines have been trying to explain the enduring paradox of the growing activity and volume of mergers and acquisitions (M & A) versus the high failure rate of M & A. This Handbook will stimulate scholars to focus on new research directions.

Chapter 4: Placing process factors along with contextual factors in merger and acquisition research

Taco H. Reus, Kimberly M. Ellis, Bruce T. Lamont and Annette L. Ranft

Subjects: business and management, corporate governance, organisational behaviour, strategic management, economics and finance, corporate governance

Extract

Mergers and acquisitions (M & A), which commonly necessitate major organizational changes in at least one firm, show a clear case in point of the intricate, intertwined nature of contextual factors surrounding business combinations and process factors characterizing the way in which such combinations are implemented. M & A involve consequential strategic decision-making in which many contextual factors play a role. Strategic planners focus their initial attention on preexisting characteristics of the two firms and attributes of the acquisition itself in order to determine which deals provide the best opportunities to achieve improved performance, enhance strategic positioning, and attain other value-creating benefits. These contextual factors in turn influence the process through which the operations of previously separate firms are subsequently integrated so that strategic benefits are actually realized. From a practical perspective, this link between contextual and process factors necessitates a tight cooperation between strategy planners and integration teams. Ed Liddy, Chairman and Chief Executive Officer of Allstate, stressed this cooperation when he explained that at “Allstate, we have an integration team that works hand-in-hand with our strategic-planning area. They’ll press the planners: ‘What’s the logic of this acquisition? . . . [W]hat processes do we have that we can transfer to the acquired company to bring it up to a level of performance that we’re comfortable with? What can we borrow from them that would help us?’” (Carey, 2001: 15).

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information