ABSTRACT
Corporate combinations – the merger of separate entities into a new organization or the acquisition of one firm by another – have become a regular component of the managerial repertoire. Many motives prompt executives to acquire or merge with another organization. In some cases, a combination can help a company move more quickly into a new market than could occur through internal growth or pursue a strategy that would otherwise be too costly, risky or technologically advanced to achieve independently. Other times, deals are opportunistic, such as when a troubled competitor seeks a savior or when a bidding war ensues after a firm is “put into play.” Still other times, acquisitions or mergers can be defensive moves to protect market share in a declining or consolidating industry. The overarching reason for combining with another organization is that the union will provide for the attainment of strategic goals more quickly and inexpensively than if the company acted on its own (Hapeslagh & Jamison, 1991). This chapter examines the merger and acquisition (M&A) process and identifies the human, organizational and cultural factors that matter most in eventual strategic and financial success.
