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Customer reactions to M&As

Mamatov, Madamin; Mazanyy, Mykola and Kristensson, Dmitri (2010)
Department of Business Administration
Abstract
Merger and acquisition deals are one of the most important events corporations engage in. After completing mergers the most essential task for executives would be maintaining joint revenue growth in order to provide the deal’s success. So, customers’ reaction to M&As is a crucial factor for the achievement of goals through M&A. The main purpose of this thesis is to study how customers react when companies get involved in M&A through joint sales dynamics of M&A parties. Our study also includes the characters and the importance of different parameters such as size, brand, industry, location, merger type and customer type for the customers’ reactions. A number of relevant hypotheses were developed based on the study of past researches.... (More)
Merger and acquisition deals are one of the most important events corporations engage in. After completing mergers the most essential task for executives would be maintaining joint revenue growth in order to provide the deal’s success. So, customers’ reaction to M&As is a crucial factor for the achievement of goals through M&A. The main purpose of this thesis is to study how customers react when companies get involved in M&A through joint sales dynamics of M&A parties. Our study also includes the characters and the importance of different parameters such as size, brand, industry, location, merger type and customer type for the customers’ reactions. A number of relevant hypotheses were developed based on the study of past researches. Quantitative methods of analysis using regression models showed that customers negatively react to merger and acquisition events. Further analysis revealed that size of M&A parties, level of brand, participants location (cross-border versus domestic) and the size of acquirer relative to target are the influential for customers’ reactions. On the other hand we found that customer reactions are barely effected by the duration of M&A process, different kinds of industries and the types of merger deals and customers. (Less)
Please use this url to cite or link to this publication:
@misc{1625278,
  abstract     = {Merger and acquisition deals are one of the most important events corporations engage in. After completing mergers the most essential task for executives would be maintaining joint revenue growth in order to provide the deal’s success. So, customers’ reaction to M&As is a crucial factor for the achievement of goals through M&A. The main purpose of this thesis is to study how customers react when companies get involved in M&A through joint sales dynamics of M&A parties. Our study also includes the characters and the importance of different parameters such as size, brand, industry, location, merger type and customer type for the customers’ reactions. A number of relevant hypotheses were developed based on the study of past researches. Quantitative methods of analysis using regression models showed that customers negatively react to merger and acquisition events. Further analysis revealed that size of M&A parties, level of brand, participants location (cross-border versus domestic) and the size of acquirer relative to target are the influential for customers’ reactions. On the other hand we found that customer reactions are barely effected by the duration of M&A process, different kinds of industries and the types of merger deals and customers.},
  author       = {Mamatov, Madamin and Mazanyy, Mykola and Kristensson, Dmitri},
  keyword      = {M&A; customer reactions; revenue; customer types; brand; horizontal,vertical and conglomerate mergers; cross-border and domestic mergers,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Customer reactions to M&As},
  year         = {2010},
}