Failure Factors of M&A - A Literature Survey Between 2010 and 2020
(2021) BUSN79 20211Department of Business Administration
- Abstract
- Purpose: The high failure rate of M&As is still one of the main puzzles. The purpose of this research is to identify how concepts of failures changed after the global financial crisis and to see the main causes of such failures according to the research in the set time frame.
Theoretical framework: Motives of M&A failure are categorized into synergy motive and self -managerial motives. Based on these motives, the thesis uses recent research to build a new framework on M&A failure causes.
Design/methodology/approach: Findings are based on an extensive literature review including 40 articles published between 2010 to 2020. Main selection criterion is the keyword “mergers and acquisitions failure” applied to the database “LubSearch”.... (More) - Purpose: The high failure rate of M&As is still one of the main puzzles. The purpose of this research is to identify how concepts of failures changed after the global financial crisis and to see the main causes of such failures according to the research in the set time frame.
Theoretical framework: Motives of M&A failure are categorized into synergy motive and self -managerial motives. Based on these motives, the thesis uses recent research to build a new framework on M&A failure causes.
Design/methodology/approach: Findings are based on an extensive literature review including 40 articles published between 2010 to 2020. Main selection criterion is the keyword “mergers and acquisitions failure” applied to the database “LubSearch”. Each article is coded and categorized. To analyze the literature, we use literature survey as a method. The thesis applies case studies as complements to draw a practical example into the findings.
Conclusion: The findings of this thesis show that the main failure factors according to the literature are learning in combination with experience, integration as well as strategy, process related, and company characteristics. However, those factors are impacted by behavioral factors such as overconfidence, as well as communication. Those findings were also visible in the cases of Microsoft and Bayer. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9055015
- author
- Bergström, Ida LU and Rucht, Caroline LU
- supervisor
- organization
- course
- BUSN79 20211
- year
- 2021
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Mergers and acquisitions, M&A, failure, learning, experience, motives, behavior, communication, synergy, integration, strategy, relatedness, culture, industry, political, cross-border
- language
- English
- id
- 9055015
- date added to LUP
- 2021-09-08 14:37:42
- date last changed
- 2021-09-08 14:37:42
@misc{9055015,
abstract = {{Purpose: The high failure rate of M&As is still one of the main puzzles. The purpose of this research is to identify how concepts of failures changed after the global financial crisis and to see the main causes of such failures according to the research in the set time frame.
Theoretical framework: Motives of M&A failure are categorized into synergy motive and self -managerial motives. Based on these motives, the thesis uses recent research to build a new framework on M&A failure causes.
Design/methodology/approach: Findings are based on an extensive literature review including 40 articles published between 2010 to 2020. Main selection criterion is the keyword “mergers and acquisitions failure” applied to the database “LubSearch”. Each article is coded and categorized. To analyze the literature, we use literature survey as a method. The thesis applies case studies as complements to draw a practical example into the findings.
Conclusion: The findings of this thesis show that the main failure factors according to the literature are learning in combination with experience, integration as well as strategy, process related, and company characteristics. However, those factors are impacted by behavioral factors such as overconfidence, as well as communication. Those findings were also visible in the cases of Microsoft and Bayer.}},
author = {{Bergström, Ida and Rucht, Caroline}},
language = {{eng}},
note = {{Student Paper}},
title = {{Failure Factors of M&A - A Literature Survey Between 2010 and 2020}},
year = {{2021}},
}