Are mergers and acquisitions the preferred option for businesses seeking rapid growth and success?
- The aim of the research
- Literature review
- Literature sources available
- Definition of mergers and acquisitions
- Types of mergers and acquisitions
- Stages of mergers and acquisitions
- Motives for mergers and acquisitions
- Mergers and acquisitions ? a success or failure
- Reasons for failure of mergers
- Research methodology
In today's complex and dynamic corporate world, there is a tremendous allure towards mergers and acquisitions. Companies, in the pursuit of rapid growth and gaining competitive advantage over the other market players, opt for mergers and acquisitions as a key to corporate success. In the recent years, the number of mergers and acquisitions has increased immensely, but evidence shows that as many as seven out of ten fail to add value and succeed (Dealogic mergers & acquisitions review, 2002). Companies are lured by the merger mania, but the success rate of such strategic moves (Andersen, 2000) has been disappointing.
This research is an analytical study of the essence of mergers and acquisitions.
[...] Pills Gain More Corporate Adherents (2000) Mergers & Acquisitions: The Dealermaker's Journal, July, Volume 35, Issue p17. Schraeder, M. & Self, D. (2003), Enhancing the success of mergers and acquisitions: an organizational culture perspective. Management Decision, Volume 41 Number pp511-522. Tips to make that merger work (2002) Journal of accountancy, Nov 2002, Volume 194 Issue 5,p28. Vos, E. & Kelleher, B. (2001) Mergers and takeovers: A Memetic Approach. Journal of Memetics Evolutionary Models of Information Transmission, Volume 5 Issue pp10-23. Wall Street Journal, Harvard Business Review, Forbes and Fortunes. [...]
[...] To determine if merged companies are happy with the decision of merger and if mergers and acquisitions are the right formula for growth and success in today's complex and dynamic corporate world, case study methodology has been adopted. Few cases would be examined to answer the research question in the light of relevant theories of strategies for growth and expansion; and data from secondary research which has been listed below. Sources of secondary research Journal articles Bower, J. (2001) Not All M&As are alike. [...]
[...] Existing empirical research have highlighted the recent peak of mergers and acquisitions putting emphasis on the essence of mergers and acquisitions and throwing light into the reasons for companies to adopt such strategic options for growth and success. Increasingly, mergers and acquisitions have assumed an international dimension due to global economic integration and elimination of trade barriers. Definition of mergers and acquisitions Mergers and acquisitions involve the bringing together of two organizations with often disparate corporate personalities, cultures and value systems. [...]