Recommended model for pre-deal phase based on findings from executed Mergers & Acquisitions
Panicker, Praveen (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022120927633
https://urn.fi/URN:NBN:fi:amk-2022120927633
Tiivistelmä
The success of M&As across the corporate world has been an enigma due to its poor success rates across multiple different businesses. This thesis research aimed to identify how to model the pre-deal phase to secure the post-deal phase business for at least the first 365 days. This approach was inspired by the commissioner’s wish based on their practical, real-world need. The commissioner was planning their second wave of acquisitions towards inorganic growth and needed a practical model on “how-to” organize the pre-deal phase for better effectiveness. The objective of the exercise was to identify all the good and ineffective factors in conducted M&As.
Lessons learned would pave the path towards identifying the model for organizing the pre-deal phase. The method utilized for data collection occurred via empirical research with qualitative data research utilizing a case study model. The research approach was inspired by constructive research approach. Questions for data collection were based on the theoretical framework/literature review conducted. The research was conducted for five different cases with 16 interviewees finally participating for data gathering. The data analysis for the collected data followed the “Within-Cases” analysis and “Cross-Cases” pattern using divergent techniques. All confidential information was filtered to ensure the wishes of the interviewees.
The result of the data analysis was based on the essential findings and lessons learned. Many findings agreed with the performed literature review, but at the same time, there were many new findings and some contradictions from the literature review. Based on this, the author was able to recommend a model how to organize and perform the pre-deal phase of the acquisition. It also indicated components not found in the study but were strongly recommended by the literature review, for instance, the focus on cultural due diligence.
Based on the recommended model of how to organize the pre-deal phase of an M&A, few conclusions were drawn. Besides them, critical success factors were also added to converge focus in the future to make the M&As more effective by prioritizing key areas when executing the pre-deal phase.
Lessons learned would pave the path towards identifying the model for organizing the pre-deal phase. The method utilized for data collection occurred via empirical research with qualitative data research utilizing a case study model. The research approach was inspired by constructive research approach. Questions for data collection were based on the theoretical framework/literature review conducted. The research was conducted for five different cases with 16 interviewees finally participating for data gathering. The data analysis for the collected data followed the “Within-Cases” analysis and “Cross-Cases” pattern using divergent techniques. All confidential information was filtered to ensure the wishes of the interviewees.
The result of the data analysis was based on the essential findings and lessons learned. Many findings agreed with the performed literature review, but at the same time, there were many new findings and some contradictions from the literature review. Based on this, the author was able to recommend a model how to organize and perform the pre-deal phase of the acquisition. It also indicated components not found in the study but were strongly recommended by the literature review, for instance, the focus on cultural due diligence.
Based on the recommended model of how to organize the pre-deal phase of an M&A, few conclusions were drawn. Besides them, critical success factors were also added to converge focus in the future to make the M&As more effective by prioritizing key areas when executing the pre-deal phase.