A Decision-Making Framework to Analyze Important Dimensions of M&A Performance

Abstract

This chapter develops a decision-making framework to analyze important dimensions of mergers and acquisitions. Using a PLS approach, we show that strategic deals’ performance – measured by means of synergy realization, relative performance (compared to the competition), and absolute performance – is determined by three dimensions: strategic logic, organizational behavior, as well as finance. We find that the following significant variables, which stem from each of these dimensions, should be taken into account to ensure a successful deal: market similarities, market complementarities, operational similarities, operational complementarities, market power, purchasing power, acquisition experience, relative size, and due diligence.

Citation

Straub, T., Borzillo, S. and Probst, G. (2012), "A Decision-Making Framework to Analyze Important Dimensions of M&A Performance", Finkelstein, S. and Cooper, C.L. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 199-235. https://doi.org/10.1108/S1479-361X(2012)0000011013