Run or hide: changes in acquisition behaviour during the COVID-19 pandemic
Journal of Strategy and Management
ISSN: 1755-425X
Article publication date: 1 July 2021
Issue publication date: 4 February 2022
Abstract
Purpose
Mergers and acquisitions (M&As) are an important strategic tool for continuous adaptation, sustainable corporate development and external growth. At the same time, M&As involve high levels of risk with mixed performance results even under normal circumstances. Even though the M&A market was continuously growing for the last decade, it was abruptly ended by the coronavirus 2019 (COVID-19) pandemic as executives were more concerned about liquidity than with long-term growth strategies. This raises the question how M&A behaviour is affected by the economic fall-out of the COVID-19 pandemic.
Design/methodology/approach
The mixed method research design was employed in this study.
Findings
The authors particularly investigate how target selection as well as synergy management are affected by the pandemic. The study analysis reveals four archetypical responses to the COVID-19 crisis. The authors describe those responses in detail and analyse antecedents that seem to influence firms' acquisition behaviour during the pandemic.
Originality/value
The paper draws on survey and interview data of M&A practitioners.
Keywords
Citation
Bauer, F., Friesl, M. and Dao, M.A. (2022), "Run or hide: changes in acquisition behaviour during the COVID-19 pandemic", Journal of Strategy and Management, Vol. 15 No. 1, pp. 38-53. https://doi.org/10.1108/JSMA-02-2021-0046
Publisher
:Emerald Publishing Limited
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