Does merger &amp; acquisition (M&amp;A) strategy matter? A contingency perspective

Angwin, Duncan; Urs, Uma; Appadu, Naaguesh; Thanos, Ioannis C.; Vourloumis, Stavros; Kastanakis, Minas N.

doi:10.1016/j.emj.2022.09.004

Cited by 14 publications

(14 citation statements)

References 66 publications

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“…M&As emerge from strategic decisions but different configurations may be possible due to the post-merger's multidimensional structure (Angwin et al. , 2022).…”

Section: The Theoretical Background Of Manda Parameters and Their Imp...mentioning

confidence: 99%

“…These attempts have resulted in depreciation because of various reasons including misjudgments of valuations, poor integration, financial burdens, unbalanced expectations between shareholders and stakeholders, cultural differences, weak leadership, decision-making biases and improper communications (Kumar and Sharma, 2019). Despite many integration problems, M&A investments are in trillion dollars (Schweizer et al, 2022) (Angwin et al, 2022), especially in emerging markets such as BRICS countries (Li et al, 2021). Some famous examples are Lenovo-IBM ThinkPad, TATA Group-Jaguar and Land Rover, Gerdau-Sidenor, Sberbank-Volksbank and Woolworths Holdings-David Jones.…”

Section: 8 2280mentioning

confidence: 99%

“…2. The theoretical background of M&A parameters and their impacts on postmerger M&As emerge from strategic decisions but different configurations may be possible due to the post-merger's multidimensional structure (Angwin et al, 2022). Although measuring the degree of post-merger integration is difficult (Schweizer et al, 2022), there is a consensus on structural integration.…”

Section: 8 2280mentioning

confidence: 99%

“…Despite many integration problems, M&A investments are in trillion dollars (Schweizer et al. , 2022) (Angwin et al. , 2022), especially in emerging markets such as BRICS countries (Li et al.…”

Section: Introductionmentioning

confidence: 99%

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Hyper-project portfolio management: post-merger project portfolios

Cihan

Alabaş-Uslu

Kabak

2023

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PurposeThis study aims to develop a new integrated decision-making framework specifically designed to address complexity and uncertainty for project portfolio management. It particularly focuses on managing portfolios in a post-merger context. The paper portrays a normative and prescriptive approach to effectively creating a well-balanced project portfolio in a post-merger scenario.Design/methodology/approachThis study introduces hyper-project portfolio frame as a prospective methodology for evaluating post-merger portfolios. The proposed method especially addresses the challenges associated with integration following a merger.FindingsHyper-project portfolio frame provides fundamental leaps in post-merger project portfolios. The frame gives opportunities to check consistency with policy, organizational scalability, flexibility and product diversity. It also underpins achieving the strategic objectives of mergers and acquisitions (M&As).Research limitations/implicationsThe literature synthesis is approached from an interpretative standpoint. The research incorporates discussions and comparative studies from the relevant literature and introduces a novel approach. Additionally, new descriptive studies can expand the proposed process-oriented decision-making. Moreover, this research does not consider hostile takeovers.Originality/valueNested in content and process-oriented fashion, the frame provides suitable prequalification analysis for portfolios in a post-merger under the concepts of complexity, uncertainty, risk and value.

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“…M&As emerge from strategic decisions but different configurations may be possible due to the post-merger's multidimensional structure (Angwin et al. , 2022).…”

Section: The Theoretical Background Of Manda Parameters and Their Imp...mentioning

confidence: 99%

Section: 8 2280mentioning

confidence: 99%

Section: 8 2280mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Hyper-project portfolio management: post-merger project portfolios

Cihan

Alabaş-Uslu

Kabak

2023

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“…Such contradictory views suggest that, beyond the ex ante assessment of compatibility with resources and capabilities between acquirer and target, other forces might be at stake when assessing the fate of acquisitions (Angwin et al , 2022; Weber et al , 2011; Yu et al , 2016). Different authors have argued, in fact, for the importance of combining them adequately (Helfat and Peteraf, 2003; Porter, 1991; Angwin et al , 2022) and even point directly to the strategic position of the firm as a key factor in the success of acquisitions (Meyer and Altenborg, 2008; Bauer et al , 2018). Hence, building on these ideas, we explore the impact of strategic compatibility between acquirers and targets on the acquirer’s post-acquisition business performance.…”

Section: Introductionmentioning

confidence: 99%

On the alignment of competitive strategies for successful acquisitions: a two-decade longitudinal analysis

López‐Manuel

Sartal

Vázquez

2023

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Purpose Most studies explore the success of mergers and acquisitions through ex ante analyses based on the compatibility of resources and capabilities between the acquirer and target. As more than half of them fail, there seems to be room for enhancing our understanding of when and how acquisitions can actually improve firms' competitiveness. Diverging from these conventional approaches, the authors posit that attention should be at the strategic level. The purpose of this paper, therefore, is to explore the existence of compatibility between acquirers’ and targets’ competitive strategies and its effect on post-acquisition business performance. Design/methodology/approach Through the Thomson Reuters Eikon financial and acquisition databases, the authors built a unique data panel of 174 acquirer–target matched acquisitions in the manufacturing sector from 24 different countries between 2000 and 2020. The authors used a two-step System-GMM approach to address the hypotheses proposed in this paper. This methodology allowed to isolate and easily compare the differential effects of each possible combination of strategic similarity and dissimilarity between the target and acquiring company on the latter’s post-acquisition strategies. Findings The need to unravel the motives behind successful acquisitions has gained enormous interest in recent years among academics and managers to improve – or maintain – firm competitiveness. Through a panel data of 174 acquisitions among manufacturing firms (2000–2020), this study shows that differentiated firms improve their business performance by acquiring firms with similar strategies; nevertheless, their performance worsens if the acquired firm follows a cost-leadership strategy. Concerning acquirers with a cost-leadership strategy, the lack of clear behavioral patterns suggests that the lower knowledge absorption capacity associated with these firms might be a decisive factor in being able to assimilate and efficiently exploit the acquired firm's knowledge. Originality/value Overall, this approach offers a new and valuable perspective for practitioners because it improves understanding of the possible causes of merger failure and opens new attentions to consider in maximizing success and long-term competitiveness. The results of this study bring, thus, an unexpected result to this research: the importance of the acquirer’s strategy beyond the similarity or dissimilarity of the strategies of the acquirer and the acquired company.

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