ABSTRACT
This chapter focuses on merger and acquisition (M&A) versus other growth modes, external and internal M&A drivers, and M&A motives. M&A can reduce industry capacity, involve growth through geographic, product or market extensions, or target needed technology in ways that can benefit acquirers. As a result, the use of an acquisition as part of a strategy often depends on senior managers external monitoring and internal slack resources to implement change to maintain fit with a firm’s environment. The impact of waves can be significant, as approximately half of all M&A activity in the US during the 20th century took place during an acquisition wave precipitated by political and economic change. Organizational change is often associated with responding to either an opportunity or a threat. While the content of change is critical to understanding M&A, research consistently points to surprises arising from the complex web of interdependencies inside and outside of M&A.
