Do Synergies Pop up Magically in Digital Transformation-Based Retail M&A? Valuing Synergies with Real Options Application

Abstract

This paper aims to explore and to illustrate success factors of reciprocal synergies of digital transformation-based merger and acquisition (M&A) deals in the grocery retail industry. The author carried out a case study on the merger of Ahold Delhaize in 2016. The paper’s contribution is a conceptual model of research that helps in pre-acquisition analysis on competence-based synergies in M&A to value strategic synergies as market value added a using real options application. By combining qualitative and quantitative research methods, the author provides empirical evidence to indicate the validity and value of the proposed research framework for both scholars and practitioners alike.

Driving Digital Transformation in Small Banks With VRIO Analysis

“…companies can pinpoint gaps in their capabilities and develop strategies to acquire or improve necessary resources (Brewis et al 2023). For those contemplating mergers and acquisitions, the VRIO framework is helpful in evaluating the strategic assets of potential targets (Cirjevskis, 2020). The "Organization" in VRIO highlights the significance of organizing the company's structure to leverage the potential advantages of its resources.…”

Carbon Footprint of Alternative Grocery Shopping and Transportation Options from Retail Distribution Centers to Customer

“…5−9 They enable grocers to meet demand for pick-up orders, sometimes within an hour of the order being placed; MFCs require minimal up-front investment, operational costs, and last-mile delivery compared to large automated warehouses. 5,7,8,10,11 MFCs can serve as the hub, of a hub-and-spoke distribution model. 12 They typically fulfill up to 80% of an online grocery order, with the remaining 20% filled by employees picking items from store shelves.…”

“…While some grocers in the UK (Tesco, Asda, Waitrose, and Sainsburys) and Kroger in the U.S. are using large automated warehouses called fulfillment centers, many grocers such as Whole Foods, Meijer, and Albertsons are investing in micro-fulfillment centers (MFCs). MFCs are small, automated warehouses often located within existing stores. − They enable grocers to meet demand for pick-up orders, sometimes within an hour of the order being placed; MFCs require minimal up-front investment, operational costs, and last-mile delivery compared to large automated warehouses. ,,,, …”