Cross-border M&A motives and integration best practices

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Journal Title
Journal ISSN
Volume Title
School of Business | Bachelor's thesis
Date
2024
Major/Subject
Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
50
Series
Abstract
Merger and Acquisition (M&A) transactions have increased in volume over the past century, acting as a popular tool for firms seeking rapid growth and expansion in today’s competitive business landscape. Despite their attractiveness, failure rates remain shockingly high. A primary cause for such high failure rates is poor post-merger integration. Essential to deal success, effective integration management plays a crucial role in realizing the projected value of the investment. The main objective of this study was to investigate key drivers behind M&A transactions and management best practices during post-merger integration aiming to determine how M&A deals can successfully add value to firms. The findings of this research revealed that firms engage in M&A for various reasons including accelerated growth, rapid business transformation, strategic expansion, diversification, and access to new capabilities. Additionally, effective post-merger integration practices such as effective management, cultural alignment, and transparent communication were found to play a crucial role in achieving success and creating value.
Description
Thesis advisor
Rannikko, Heikki
Keywords
M&A, merger, acquisition, post-merger integration, PMI
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Citation