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Sweetening the Logistics: Drivers of Logistics Synergy Realization in Horizontal M&As - The Case of the Cloetta and Leaf Merger

Ridderheim, Ylva LU and Pålsson, Erik (2012) FEKP02 20121
Department of Business Administration
Abstract (Swedish)
The increasingly competitive climate has caused companies to pursue counteractive strategies such as M&As in the hope to attain synergy potential. However, M&As are associated with a high failure rate and synergy realization is often unsuccessful. One area poorly covered in previous literature and often unattended by merging parties is synergies within logistics, despite its significance for merger success. The aim of this thesis is, consequently, to contribute to increased knowledge of logistics synergies in horizontal M&As and realization of these, in order facilitate horizontal M&A success.

Existing literature on the subject is summarized and visualized by the development of a theoretical framework distinguishing key parameters for... (More)
The increasingly competitive climate has caused companies to pursue counteractive strategies such as M&As in the hope to attain synergy potential. However, M&As are associated with a high failure rate and synergy realization is often unsuccessful. One area poorly covered in previous literature and often unattended by merging parties is synergies within logistics, despite its significance for merger success. The aim of this thesis is, consequently, to contribute to increased knowledge of logistics synergies in horizontal M&As and realization of these, in order facilitate horizontal M&A success.

Existing literature on the subject is summarized and visualized by the development of a theoretical framework distinguishing key parameters for potential synergy realization. The application of the theoretical framework on the case study of the Cloetta and Leaf merger reveals that the companies have significant synergy realization potential. The high synergy realization potential is derived from a high combination potential along with a high level of integration. The empirical results supports the fact that combination potential and integration are important factors, however, employee resistance is evident in the Cloetta and Leaf merger and is considered to have a negative impact on synergy realization potential. Furthermore, employee resistance seems to increase with a high degree of similarities and when the relative size of the companies is big.

After applying the framework, certain areas of improvement were distinguished suggesting that a complete framework for potential synergy realization and the subsequence of affecting factors is missing in existing literature. Therefore, the empirical findings were compiled into a revised framework, the Potential Logistics Synergy Realization Framework. The framework builds on existing literature together with the key findings from the case study and aims to better describe what factors affect potential logistics synergy realization. (Less)
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author
Ridderheim, Ylva LU and Pålsson, Erik
supervisor
organization
course
FEKP02 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Logistics synergies Horizontal M&As Integration Combination potential Employee Resistance Potential Synergy Realization
report number
241
ISSN
1651-­0100
language
English
id
2620055
date added to LUP
2014-12-22 10:28:30
date last changed
2014-12-22 10:28:30
@misc{2620055,
  abstract     = {The increasingly competitive climate has caused companies to pursue counteractive strategies such as M&As in the hope to attain synergy potential. However, M&As are associated with a high failure rate and synergy realization is often unsuccessful. One area poorly covered in previous literature and often unattended by merging parties is synergies within logistics, despite its significance for merger success. The aim of this thesis is, consequently, to contribute to increased knowledge of logistics synergies in horizontal M&As and realization of these, in order facilitate horizontal M&A success.

Existing literature on the subject is summarized and visualized by the development of a theoretical framework distinguishing key parameters for potential synergy realization. The application of the theoretical framework on the case study of the Cloetta and Leaf merger reveals that the companies have significant synergy realization potential. The high synergy realization potential is derived from a high combination potential along with a high level of integration. The empirical results supports the fact that combination potential and integration are important factors, however, employee resistance is evident in the Cloetta and Leaf merger and is considered to have a negative impact on synergy realization potential. Furthermore, employee resistance seems to increase with a high degree of similarities and when the relative size of the companies is big. 

After applying the framework, certain areas of improvement were distinguished suggesting that a complete framework for potential synergy realization and the subsequence of affecting factors is missing in existing literature. Therefore, the empirical findings were compiled into a revised framework, the Potential Logistics Synergy Realization Framework. The framework builds on existing literature together with the key findings from the case study and aims to better describe what factors affect potential logistics synergy realization.},
  author       = {Ridderheim, Ylva and Pålsson, Erik},
  issn         = {1651-­0100},
  keyword      = {Logistics synergies Horizontal M&As Integration Combination potential Employee Resistance Potential Synergy Realization},
  language     = {eng},
  note         = {Student Paper},
  title        = {Sweetening the Logistics: Drivers of Logistics Synergy Realization in Horizontal M&As - The Case of the Cloetta and Leaf Merger},
  year         = {2012},
}