International post-merger integration: Lessons from an integration project in the private banking sector

Maire, Sophie; Collerette, Pierre

doi:10.1016/j.ijproman.2010.03.001

Cited by 27 publications

(18 citation statements)

References 21 publications

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“…Mitigation involves leadership actions that attempt to reduce the negative responses of employees in integration processes (Graebner 2004). Effective leadership in this respect implies the management of employees' expectations through open communication and the creation of a perception of fairness (Choi et al 2012;Hubbard and Purcell 2001;Kavanagh and Ashkanasy 2006;Maire and Collerette 2011;Meyer 2006;Ranft and Lord 2002). Ongoing integration projects frequently imply a breach of the informal contract between a firm and its employees at some time, which often leads to demotivation and resistance and might affect health and psychological well-being, particularly of those employed at the lower-status firm (Maguire and Phillips 2008;Makri and Antoniou 2012;Shleifer and Summers 1988;cf.…”

Section: N Steigenbergermentioning

confidence: 99%

The Challenge of Integration: A Review of the M&A Integration Literature

Steigenberger

2016

Int J Management Reviews

125

126

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The integration of acquired or merging firms is a key driver of the success or failure of mergers and acquisitions (M&As). Over the last 30 years, a substantial body of research has addressed M&A integration, offering rich but widely dispersed insights into this phenomenon. This paper takes stock of the current knowledge, based on a review of articles published in scholarly journals. The review advances the conceptual understanding of the phenomenon by inductively developing an overarching framework for the M&A integration literature, where integration success is a function of context, structural and communication‐based interventions, which interact with collective sensemaking processes and negotiations among integration stakeholders. Based on this framework, a research agenda is suggested. I proposes that, in particular, the interaction between structural interventions and leadership warrants further study. Also, little is known about integration project management and integration team composition or the interaction between integration context and collective sensemaking processes. Finally, there is a shortage of research on temporal dynamics within integration projects. The review demonstrates that M&A scholars made substantial progress regarding our understanding of the M&A integration process, yet much remains to be done.

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Section: N Steigenbergermentioning

confidence: 99%

The Challenge of Integration: A Review of the M&A Integration Literature

Steigenberger

2016

Int J Management Reviews

125

126

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“…Perhaps the closest match for our case in terms of the specific industry context is presented in the work of Maire and Collerette (2011) who looked at a merger between the alternative investment division of a Swiss private bank and a Taiwanese asset management boutique. Based on a real industry project, the study presents integration managers with theory-based yet practically applicable guidance for achieving a successful post-merger integration.…”

Section: Are There Any Ready-to-use Models Available From the Academimentioning

confidence: 99%

Mergers and Acquisitions in Banking: Understanding the IT Integration Perspective

Kovela¹,

Skok²

2012

IJBM

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The aim of this exploratory study is to understand the key issues associated with integrating Information Technology (IT) in banking mergers and acquisitions (M&A). The study is undertaken by reviewing a number of high-profile cases and interviewing the IT practitioners who managed the corresponding processes. The result is a comprehensive review of a poorly understood and researched area providing insights into the significance of the IT-related elements in the M&A integration and specifics of the M&A IT integration process. The study concludes by formulating a blueprint layout and integration model describing the timescale, stages, and principles of efficient IT integration. The layout and model can be used by organisations to guide and facilitate the execution of their future banking M&A transactions. Keywords: banking, mergers & acquisitions, IT integration Aims and ObjectivesThe aim of the study is to contribute to the knowledge base on best practice for IT integration within Mergers and Acquisitions (M&A) in banking. A number of large banking M&A cases were investigated through interviews with high-ranking officers who were directly involved in realisation of the corresponding transactions. Eight cases spanning fifteen years to the present time and involving major international institutions like Citigroup, Nomura, UBS, Deutsche Bank, Lloyds, and Royal Bank of Scotland were studied. The objective of the project was to study the IT integration process, its drivers, dynamics, and associated problem areas, and identify theoretical models and frameworks, as well as empirical principles in use. The outcome would be the creation of a summative profile of the IT integration process in banking M&A. Literature Review Why Focus on the IT Integration in M&A in Banking?The rationale behind the study's focus on IT integration in M&A in the banking industry is two-fold. Firstly, M&A in the financial services sector have accounted for almost 40% of the M&A worldwide in the past two decades (circa $7.1 trillion in 88.3 thousand instances between 1985 and 2002 according to Thomson Securities Financial Data, as cited in Walter (2004)), a significant part of those transactions being attributed to the banking industry. Secondly, the M&A failure rates are generally far above 50%, including high profile cases such as recent Santander's takeover of Alliance and Leicester (Williams, 2010). Yet despite IT being an essential element and major enabler in modern banking, there is no appropriate common reference framework for efficient banking IT integration available in the public domain. This makes a persuasive case for investigation of approaches for improving the efficiency of IT integration in banking M&A, particularly through the development of new structured models and frameworks. To achieve this, a full understanding of the M&A IT integration process is required. Is IT Integration Really That Important?In 2004, Walter (2004) noted a long period of dramatic restructuring for the financial services industry during which a...

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“…Also, Alaranta and Mathiassen (2014) examined the risk management perspective of the post-merger IS integration and proposed a framework to "prepare for, analyse, and mitigate risks" in order to facilitate such transactions. Finally, and perhaps closest to our needs, in 2011 Maire and Collerette presented a more practical guidance for post-merger integration specifically in the financial services scenario (Maire & Collerette, 2011), although this too fell short of providing enough technology-level detail on the implementation of the integration process.…”

Section: Manda It Integration In the Context Of It Governancementioning

confidence: 98%

Mergers and Acquisitions in Banking: A Framework for Effective IT Integration

Kovela¹,

Skok²

2015

IJBM

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This study aims to identify key issues in the information technology (IT) integration in mergers and acquisitions (M&A) in banking and propose an approach to increase the efficiency of such integration. The study produces a first cut IT integration framework based on the literature review into the key factors in IT integration in banking and selected popular IT governance models, such as Control Objectives for Information and related Technology (COBIT), and then refines it with the help of IT practitioners based on their involvement in a number of high-profile banking M&A cases. The proposed framework is thus underpinned by the latest theoretical thinking in the relevant subject field and builds on relevant practical experience. Senior level IT practitioners in banking organisations can employ the framework to inform and guide the execution and post-mortem review of their M&A integration projects.Keywords: banking, mergers & acquisitions, IT Integration, IT governance, cobit, framework Aims and ObjectivesThe study aims to expand the knowledge base on the IT integration best practices as applied to the M&A practice in banking. To achieve that, a number of large-scale high-profile banking M&A cases were investigated by interviewing key senior level technology officers directly involved in the delivery of those projects. Some of the results of the study were published in another work, Kovela and Skok (2012), which among other things confirmed that IT is a critical resource and enabler in the business model of modern banking and therefore a clear link between the business strategy driving the merger and the priority of the IT integration tasks which are key for the efficiency of M&A transactions. The current paper builds on and complements these findings by proposing a framework for those embarking on the process. The objectives here are: To establish whether the adoption of an IT integration framework is necessary for efficient integration in M&A in banking. To survey the landscape of existing IT governance frameworks and identify those that could potentially be used as a basis for the above M&A IT integration framework. To create a M&A IT integration framework and then benchmark and adjust it against the practice-based summative profile of the banking M&A IT integration process.As a result, a generic optimal M&A IT integration framework, henceforth referred to as the "IT integration framework", would be formulated. The final deliverable of this work will be a theory-based and informed-by

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International post-merger integration: Lessons from an integration project in the private banking sector

Cited by 27 publications

References 21 publications

The Challenge of Integration: A Review of the M&A Integration Literature

The Challenge of Integration: A Review of the M&A Integration Literature

Mergers and Acquisitions in Banking: Understanding the IT Integration Perspective

Mergers and Acquisitions in Banking: A Framework for Effective IT Integration

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