ABSTRACT
Mergers and acquisitions (M&A) are a major part of the corporate restructuring process and one of the fastest strategic management tools to grow a business. The consensus viewpoint in the literature is that there must be good strategic fit between the acquiring firm and the target to achieve success in M&A. This chapter highlights the importance of strategic fit, organizational and cultural issues at the early stage of the merger process. It examines both the academic literature and industry commentary to make a case for paying attention to intangible factors that are predictors of merger success at the due diligence stage. While each of the stages in the merger process (target identification, deal negotiation and post-acquisition integration) is clearly important, ultimately, it is people who create the value and are the driving force behind achieving the desired synergies. The recognition and realization of this fact should lead firms to attach equal importance to initial deal-making and subsequent integration.
