Impact of Company’s Size on Takeover Success

Filipović, Davor

doi:10.1080/1331677x.2012.11517516

Cited by 6 publications

(9 citation statements)

References 15 publications

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“…It is important to note that every method used in research on the M&A success has both its advantages and disadvantages and surveying method was used within this research because of the character of observed variables which included strategy, organizational structure, and corporate culture. Measuring instrument (questionnaire) for testing the hypotheses of this research is composed of a set of questions that the respondents including board members and company managers answered and indicated their agreement/disagreement with suggested statements whereat a Likert measurement scale of five degrees was used (Filipović, 2012). Propositions used in various measurement scales are either initially progressed for research purposes, or managed and adapted from existing measurement scales that can be found in the applicable scientific literature (Filipović, 2012).…”

Section: Methodsmentioning

confidence: 99%

“…Measuring instrument (questionnaire) for testing the hypotheses of this research is composed of a set of questions that the respondents including board members and company managers answered and indicated their agreement/disagreement with suggested statements whereat a Likert measurement scale of five degrees was used (Filipović, 2012). Propositions used in various measurement scales are either initially progressed for research purposes, or managed and adapted from existing measurement scales that can be found in the applicable scientific literature (Filipović, 2012). In the first part of the questionnaire general data about research participants (position within the company, gender, age, education, working experience), general data about the target (target's name, industry, size), and general data about the acquirer (domestic or international, legal entity or private person) were gathered.…”

Section: Methodsmentioning

confidence: 99%

“…Regarding the fact that the current research examines transactions in non-financial sector, the sample on which the empirical research was conducted comprised of 598 companies. To investigate the effect of the market for corporate control on the act of companies that were taken over, it is crucial that at least three years have passed since takeover (Filipović, 2012).…”

Section: Methodsmentioning

confidence: 99%

“…Since homogenous opinion on M&A success in academic community has not yet been reached, and taking into consideration that the success of these transactions is affected by many organizational variables, the main objective of this research is the analysis of the impact of changes in strategy, structure, and culture, as key internal organizational variables on takeover success of Croatian companies in the period from 1998 to 2006. Successful takeover is explained as takeover in which aimed company acts in a pleasing way after the takeover than in the period before the takeover (Filipović, 2012). Therefore, the target's performance will be analyzed in the period of three years before and three years after the takeover using questionnaire and financial data.…”

mentioning

confidence: 99%

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Successful takeovers and internal organizational variables: Experience from Croatia

Filipović¹,

Podrug²,

Kandžija³

2017

IJOL

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Optimal acquisition strategy represents challenge for business world and academia. Academia tries to identify all factors and perspectives influencing success of acquisition strategy. The business reality is that most of M&As do not accomplish prearranged synergies and effects; therefore, the objective of this paper was to analyze the impact of key organizational variables on the success of acquisition strategy. The aim of this paper was to determine the impact of strategy, organizational structure, and corporate culture in the change process in target company. To this end, success of target company is defined by comparison of business performance prior and after the acquisition process by using financial indicators. Empirical research was conducted on the sample of target companies in Republic of Croatia in the period from 1998 until 2006. Data was collected via questionnaire followed with business performance analysis for the period of three years after the transaction's execution. Empirical research has confirmed a statistically significant correlation between the radical change in the target's strategy and its performance after the takeover. Likewise, research confirmed statistically significant correlation between changes in organizational structure and target's performance after the takeover and statistically significant correlation between larger change in corporate culture and target's performance after the takeover. Scientific contribution of this paper was the verification of importance of changes in strategy, organizational structure, and corporate culture for successful change management in target companies.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

mentioning

confidence: 99%

See 2 more Smart Citations

Successful takeovers and internal organizational variables: Experience from Croatia

Filipović¹,

Podrug²,

Kandžija³

2017

IJOL

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“…As for large acquired firms, they experienced no change or improvements in the pre-acquisition stage when being cp0ompared with non-acquired firms and no significant productivity improvements in the stage of post-acquisition. Filipovic (2012) [48] mentioned in his study that a large number of merger and acquisition transactions do not result in synergies planned and that merger and acquisition are impacted directly by different variables like strategy, management, corporate culture, structure, company size and others. The researchers tested the effect of a firm's size on the success of the takeover.…”

Section: Impact Of Company's Size On Acquisition Successmentioning

confidence: 99%

Exploring Improvements of Post-Acquisitions Corporate Performance in Industrial Sector in the Egyptian Stock Market

Abdelrahman¹

2019

JFA

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The purpose of this study is to examine the impact of Egyptians Acquisitions on the post-performance of the acquired companies from the period of 2003 to 2015 by the use of event study methodology. This is done by studying the financial post-performance (includes: liquidity, activity, profitability and capital structure ratios) of a sample consists of 17 companies from the industrial sector as dependent variables, and comparing their results with the pre-performance and the acquisition event as an independent variable. By using a non-parametric Mann-Whitney-Test that can replace the unpaired ttest in the case of small samples, in addition to the factor analysis. The Study tests the significant difference between performance of the acquired companies before and after the acquisition. Empirical results for the whole sample showed a negative significant difference between both the profitability and the capital structure performance of the acquired companies before and after the acquisition. On the other hand, it showed an insignificant difference between both the liquidity and the activity performance of the acquired companies before and after the acquisition. Studying the sub-industrial sectors shows that the Industry Sector has an impact on the performance of the acquired companies and that appears in The Basic Resources and Utilities Sub-sector liquidity, profitability and capital structure performance and has no impact on financial activity performance. For the Construction and Materials Sub-sector there is no impact on the liquidity, profitability and financial activity performance. However, there is a significant impact on the capital structure. For the Personal and Household Products Sub-sector, there is a significant impact on profitability performance, and there is no impact on liquidity, financial activity, and capital structure performance. For the Food, Beverages and Pharmaceutical Sub-sector there is no impact on the liquidity, profitability and financial activity performance and there is a significant impact on capital structure performance. By studying the impact of the Capital Issued on the post-performance of the acquired companies, the researcher showed that there is an impact on the capital structure performance for the acquired companies below 50 M and on profitability performance above 50 M issued capital. On the other hand, there is no impact on the other performance measures for companies above and below 50 M issued capital. Finally, the study results introduced some useful recommendations for the acquisition events in the Egyptian Market.

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How post-merger integration duration affects merger outcomes

Johnston

2020

JBIM

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Purpose This study aims to confirm earlier findings that differences between merger and acquisition (M&A) participant firms are a hurdle for successful mergers and shows that merger outcomes can also be affected by the post-merger integration duration (PMID). Design/methodology/approach Experimental research on distinct cultures developed within experimental pre-merger subject groups is used to compare pre- and post-integration performances. Findings This study finds that firm distance (i.e. inherent differences between pre-merger firms) negatively influences merger success; no significant relationship between firm distance and PMID exists and PMID is positively related to merger success. Specifically, a slower integration minimizes conflicts between merger partners, enhances trust-building and reduces the disruption of existing resources and processes in both firms, which may benefit M&As. By contrast, a fast integration that shortens the overall integration process may discourage the combined entity from recognizing the intended synergy quickly. Research limitations/implications The new finding that PMID can affect merger outcomes invites empirical validation. This study presents experimental evidence that prolonged, well-structured post-merger integration may compensate for the negative time-variant issues associated with PMID. Practical implications Organizational support for collaborative learning between professional members should be a strategic consideration for firms so that acquiring business capabilities can be more natural and cost-efficient than building internal capabilities despite possibly slowing down the integration process. Encouraging a transfer of technical and client knowledge between the combined members can create value and understand differences in both the form and content of each firm’s knowledge base and the pre-existing mechanisms for sharing knowledge. It may lower the level of resistance in knowledge transfer. Originality/value While M&As may better facilitate the cost-effective expansion of business offerings than building capabilities internally, they can require considerable time, preventing many firms from realizing their intended outcomes. Nevertheless, less attention has been focused on PMID and its influence on M&As. This study is the first to use experimental research to examine the effects of PMID on merger success.

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Impact of Company’s Size on Takeover Success

Cited by 6 publications

References 15 publications

Successful takeovers and internal organizational variables: Experience from Croatia

Successful takeovers and internal organizational variables: Experience from Croatia

Exploring Improvements of Post-Acquisitions Corporate Performance in Industrial Sector in the Egyptian Stock Market

How post-merger integration duration affects merger outcomes

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