Success of a merger or acquisition - a consideration of influencing factors
20 Jul 2012-International Journal of Management Practice (Inderscience Publishers)-Vol. 5, Iss: 3, pp 270-286
TL;DR: In this paper, the authors look at the different factors that impact the success or failure of a merger at each stage of the process and bring out the factors that managers need to keep in mind to ensure a successful merger.
Abstract: Mergers and Acquisitions (M&As) continue to be a dominant business strategy for organisations. Despite evidence of greater number of failures than successes, organisations still view M&A as a beneficial strategic activity. This paper looks at the different factors that impact the success or failure of a merger at each stage of the process and brings out the factors that managers need to keep in mind to ensure a successful merger.
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TL;DR: In this article, the authors explored the perceptions of senior managers about the impact of change on the psychological contract and highlighted the factors that need to be addressed to strengthen the psychological contracts of employees during periods of change.
Abstract: Orientation: Over a period of 6 years, a South African pharmaceutical company had been involved in several mergers and acquisitions. These changes had proved difficult for staff and staff attrition had risen. Research purpose: The objective of the study was to explore the perceptions of senior managers about the impact of change on the psychological contract. The sub-objectives were to determine what organisational factors contribute to changes in the psychological contract during periods of change, and the implications of the breach of the psychological contract for the company and its employees. Motivation for the study: As the company was set to embark on further mergers and acquisitions, the opinions of senior managers about how such changes should be addressed are important for the company. Research design, approach and method: A case study approach was used in this qualitative study. The population comprised 60 senior managers of whom 12 were purposefully selected for inclusion in the study. A semistructured interview schedule was used to capture the views of these managers and themes were extracted by means of content analysis. Main findings: Seven themes emerged which encapsulated the perceptions of senior managers about the impact of change on the psychological contract during periods of mergers and acquisitions – lack of communication, an absence of planning, lack of employee engagement, less than optimal human resources involvement, lack of preparation of the organisational culture and poor change management processes. These factors need to be addressed to strengthen the psychological contract of employees during periods of change. Practical/managerial implications: The study highlighted areas that leaders and managers of the company should consider when embarking on mergers and acquisitions if the psychological contract of employees is not to be negatively impacted. Contribution: While caution must be exercised in the generalisation of the findings, companies in the same industry or those in other industries could use the findings as points of departure for considering the elements that should be addressed in change initiatives.
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TL;DR: In this paper, NiO/PVC nano hybrid composites have been synthesized through sol-gel method using X-ray diffraction, Fourier transfer infrared radiation, scanning electron microscopy and atomic force microscopy techniques.
Abstract: In this study, NiO/PVC nano hybrid composites have been synthesized through sol–gel method. Nano crystallites phases, crystallinity and electrical properties have been characterized using X-ray diffraction, Fourier transfer infrared radiation, scanning electron microscopy and atomic force microscopy techniques. The dielectric constant of the samples has been calculated through measuring the capacity of samples by application of GPS 132 A. Obtained results have indicated that an NiO/PVC sample with 5 g NiO and 0.02 g PVC, equivalent to 0.4 %wt PVC, in weight synthesis, at a temperature of 80 °C has a higher dielectric constant, better surface morphology, less rough surface, less leakage current, and thus has potential to be suggested as a possible gate dielectric material for future organic field effect transistor devices.
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TL;DR: In this article, Al2O3/PVP nano-hybrid composite samples are synthesized using Sol-Gel method at 80°C and the dielectric constant of the samples is calculated using GPS 132A technique.
Abstract: Al2O3/PVP nano-hybrid composite samples are synthesized using Sol–Gel method at 80 °C. Weight percent of poly 4-vinyl phenol (PVP) and aluminum oxide is 0.0, 0.28, 0.56, and 0.84. To study the nano-structural and electrical characteristics, X-ray diffraction, Fourier transfer infrared radiation, scanning electron microscopy, and atomic force microscopy are used. Dielectric constant of the samples is calculated using GPS 132A technique. The results show that the highest amounts of dielectric constant at the frequency of 120 and 1 kHz are related to Al2O3/0.28 wt% PVP (AP 0.28 wt%). PVP (k = 35) and Al2O3/0.56 wt% PVP (AP 0.56 wt%). PVP (k = 26) nano-composite samples, respectively. Therefore, at the frequency of 120 kHz, AP 0.28 wt% PVP nano-composite sample, due to having higher equivalent oxide thickness, less roughness, ohmic properties, smaller size of nano-crystallites (Scherrer diameter of 45 nm), higher dielectric constant, and as a result less leakage current, is recommended as the gate dielectric for the future of organic field effect transistors (OFET).
10 citations
TL;DR: In this article, the authors investigated the value creation mechanism in cross-border acquisitions by employing a structural equation modeling technique and surveying 103 CBAs performed by Nordic firms, revealing that resource possession, resource picking, and resource utilization are three important strategic dimensions for realizing synergy and creating value in CBAs.
Abstract: This study investigates the value creation mechanism in cross-border acquisitions (CBAs) by employing a structural equation modeling technique and surveying 103 CBAs performed by Nordic firms. The results reveal that resource possession, resource picking, and resource utilization are three important strategic dimensions for realizing synergy and creating value in CBAs. Furthermore, mediation analysis shows that the two acquisition-based dynamic capabilities—value identification and resource reconfiguration—act as important mediators in how the joining firms’ resource base impacts acquisition outcomes. The results shed light on the mechanisms through which the constructs influence value creation in CBAs and highlight the procedural and dynamic character of these determinants. The results also indicate that an integrative and process perspective, such as the “input-process-output” model proposed in this study, is an important step forward in merger and acquisition (M&A) research. Moreover, numerous research findings offer tactical implications for international acquirers. © 2016 Wiley Periodicals, Inc.
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Journal Article•
TL;DR: In this article, the authors analyzed the M&A strategy focusing on Brazilian hospitals, describes the objectives, delineates the steps of the process, and lists its advantages and benefits, and discusses obstacles, risks, and causes of success and failure.
Abstract: [] Brazil has become a globalized economy with development and professionalization of its business and market. Many sectors have attracted the interest of firms, competitors, and investors. One such sector consists of the hospitals in Brazil, which are facing challenges in improving efficiency and competitiveness. One of the strategies adopted by organizations in pursuit of growth is making mergers and acquisitions (M & A). This paper analyzes the M & A strategy focusing on Brazilian hospitals, describes the objectives, delineates the steps of the process, and lists its advantages and benefits. This paper also discusses obstacles, risks, and causes of success and failure.[Keywords] merger and acquisition; hospital; health management; strategyIntroductionFor Brazil, the 19th century represented the start of a new economic era of development in which the country left behind a protected economy with low competitiveness (and being less prone to international partners) to become an open and globalized economy with development and professionalization of its businesses and its market, and with taxes and fiscal policies that allow better international competitiveness. In this context, many sectors have attracted the interest of firms, competitors, and investors. One of these is the hospital sector that remains as one of the open markets for business.With the more open country, there was greater access to management technologies, raw materials, human capital, and especially the most modem and efficient equipment, which allowed increasing the competitiveness of most sectors of the Brazilian economy. In 2001, Goldman Sachs' chief economist, Jim O'Neill, proposed the term BRICs to designate a group of four countries that were the strongest and most important emerging economies: Brazil, Russia, India, and China. As a part of the BRICs, Brazil, today presents an attractive way for investors to increase their emerging-market exposure (Koch, 2011). An international setting with greater availability of capital for investors was prone to begin to see Brazil's great business opportunities. Thus, Brazilian companies, in various sectors, including health firms, have new challenges in the search for greater efficiency and competitiveness. Among the strategies being adopted by organizations around the world in pursuit of growth are mergers and acquisitions (M & A). Some factors that favor this phenomenon are the global economy, advanced technology, specific market forces, and government regulations (Schmidt, 2002).There are two types of firm growth strategies: internal (organic) and external (M & A). Internal growth (organic growth) means that firm growth is realized through the firm's own strengths and resources and usually requires a long time; external growth (M & A) signifies a strategy that is achieved by buying another firm or business, which is usually perceived as a faster strategy than internal growth (Park & Jang, 2011). Even though much literature has constantly used the two words "mergers and acquisitions" together, they are not the same strategies and differ slightly from one another (Kongpichayanond, 2009). A merger can happen when two companies decide to combine into one entity. Acquisitions refer to an organization's purchase of or take-over of the operations of another (Schraeder & Self, 2003).When merging, they join their available assets, liabilities and cultural values on a comparatively equal basis across different businesses and industries. In acquisitions, an organization acquires sufficient shares to increase the level of control, gain ownership of another organization, and maintains its identity (Horwitz et al., 2002). In terms of this paper's purpose, M & A is an instrument for the growth of a company. Many sectors around the world use M&A strategies to grow. In recent years, many services companies around the world, such as banks (Barros et al. …
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