ABSTRACT
Mergers and acquisitions continue to be a key option for corporate strategy. Many countries’ official statistics suggest that they fail more often than they create wealth. It is also apparent that doing the right deal in the right way can override other potential strategic pathways to growth. Mergers and acquisitions (M&A) have captured the interest of executives, policymakers, regulators, and scholars and are prime candidates to make headlines because:
staggering amounts are often involved;
these deals have a significant impact on people and their organizations;
executives the glamour may enjoy at signing ceremonies;
high stakes and thrills often surround the deal-making processes.
Given the variety of issues related to M&A, this chapter can only provide a brief overview of some of the most important themes and attributes. A general management perspective of strategic M&A is taken, focusing on two at least analytically distinct phases of acquisition processes: developing a strategic rationale and striking the deal, and managing the integration. From a meta-analysis of research evidence and numerous published cases, several general rules of thumb and premises emerge to which proficient business acquirers seem to adhere in developing the rationale and managing the process after the deal closes, thus achieving consistently superior results through M&A. The first two sections of this chapter will highlight the key issues and potential pitfalls. Key overarching principles are formulated in the concluding section.