Navigating M&A: the purpose of MCs in promoting desired outcomes

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Volume Title

School of Business | Bachelor's thesis

Date

2024

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.

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Thesis advisor

Taussi, Thomas

Keywords

management control systems, mergers and acquisitions, management accounting, family-owned enterprises, integration

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