A Decision-Making Framework to Analyze Important Dimensions of M&A Performance
Advances in Mergers and Acquisitions
ISBN: 978-1-78190-459-6, eISBN: 978-1-78190-460-2
Publication date: 22 November 2012
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.
Keywords
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
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited