Relevant Factors in The Post-Merger Systems Integration and Information Technology in Brazilian Banks

Abstract

This article discusses the factors present in post-merger integration of Systems and Information Technology (SIT) that lead to positive and negative results in mergers and acquisitions (M & A). The research comprised three of the largest acquiring banks in Brazil. We adopted two methods of research, qualitative, to operationalize the theoretical concepts and quantitative, to test the hypotheses. We interviewed six executives of banks that held relevant experience in M & A processes. Subsequently, we applied questionnaires to IT professionals who were involved in the SIT integration processes. The results showed that the quality and expertise of the integration teams and managing the integration were the most relevant factors in the processes, with positive results for increased efficiency and the increased capacity of SIT. Negative results were due to failures in exploiting learning opportunities, the loss of employees and the inexpressive record of integration procedures.

An Analytical Study of Impact of International Merger and Acquisitions on the Financial Performance for Higher Education Institution in the United States

“…Organizations merge for a multiplicity of reasons. Some of these reasons include: empire building, solidifying strategic positions, managerial hubris, increasing market power, synergy gains, achieving economies of scale, acquiring physical plant and equipment assets, expanding the competitive scale of the organization, increasing bargaining power, diversification, expansion into international markets, survival, acquiring talent or patents, articulating new missions, and providing a justification for eliminating legacy systems and personnel (Azziz et al, 2017;Martin & Samels, 2017;Pires & Marcondes, 2017;Russell, 2017b).…”

“…HEI M&A researchers experience a lack of consensus in defining one or more performance metrics for success because there is no "one" performance metric (Williams, 2017). Every HEI M&A event and HEI possesses unique qualities and objectives relative to the M&A initiative (Pires & Marcondes, 2017). To make ranking determinations the WCU ranking organizations look at a plethora of metrics in the process of ranking HEIs.…”

“…Other HEI administrators define success as the development of HEI research capacity(Altbach, 2004; Andreescu et al, 2015; Bolbanabad et al, 2017;Russell, 2017b). Many leaders consider M&A activity successful if the HEI attains financial solvency and procures economies of scale(Moran, 2016;Pires & Marcondes, 2017;…”