Navigating M&A: the purpose of MCs in promoting desired outcomes
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School of Business |
Bachelor's thesis
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Authors
Date
2024
Department
Major/Subject
Mcode
Degree programme
Laskentatoimi
Language
en
Pages
29 + 1
Series
Abstract
Mergers and acquisitions (M&A) are strategic tools for companies aiming to grow and expand their operations beyond organic growth. Unfortunately, less than half of these M&A deals achieve their desired and planned goals. However, these desired outcomes can be encouraged by implementing certain management controls (MCs) in the acquired company. These MCs aim to develop a positive view of the acquiree company and the integration process. The purpose of this thesis is to analyse the use of management controls (MCs) in promoting desired results in M&A deals within a family-owned business. The objective is to determine: What management controls are utilized in a family-owned business, what kind of controls are used in a successful integration process, and how management controls can promote desired outcomes in post-acquisition integration. This thesis is a single case study conducted with a qualitative approach, chosen to enable a deeper dive into the specific topic. The empirical data was collected by conducting two interviews with the CFO of a family-owned company, who played a significant role in the acquisition team. However, due to the qualitative approach and the thesis being a single case study, there are limitations to the findings. The findings of this thesis validate the impacts of using MCs in post-acquisition integration. Focusing on MCs that encourage good communication, trust-building, and a thriving company culture facilitates positive perceptions of the acquirer and promotes successful acquisition outcomes. Future research on the topic of MCs utilized by different kinds of acquirers is recommended.Description
Thesis advisor
Taussi, ThomasKeywords
management control systems, mergers and acquisitions, management accounting, family-owned enterprises, integration