Cross Border Mergers and Acquisitions
Module Name: Managing in Global Economy
Module No.: MM1910
Abstract
The literature presents competing theoretical viewpoints about the factors that may potentially be influential in determining the outcome of cross-border Mergers and Acquisitions and therefore this study aims to summarize empirical findings to reach a conjoint result. This done through consideration of factors at structural level and organizational level, ensuring the success of cross-border M&As. The most important factor considered is the organizational culture and national level differences at the structural level in order to minimize the risk factor. Also related primarily to other structure of integration in also important and ensures success to the acquired organization.
Introduction
Mergers and acquisitions (M&As) have been a very popular strategic movement for global businesses, attaining growth, diversification, or profitability (Fowler and Schmidt, 1988). In fact, the process of cross border M&As that started in the 1980s continued throughout the 1990s until the financial crisis and is still vigorous (Houghton et al., 2003). Cross-border merger and acquisition (M&A) activity has continued to increase at a torrid pace during the past decade and a half, to the point that it has become a major strategic tool for growth of multinational corporations (Cartwright and Cooper, 1993). During the phase of 1980s the number of cross border acquisitions occurring globally has almost tripled. Thus, accounting for a significant proportion of total M&A activity by the early 1990s - 95 percent in the case of Japanese companies and 50 percent for European Union companies (Morison and Singh, 1994). Observing a temporary slowdown during the recessionary global economy of the early 1990s, the value of cross-border M&A reached a record high of US$181.7 billion within the first nine months of 1996 (The Economist, 1997).
There is a essential paradox in the growth strategies
Module No.: MM1910
Abstract
The literature presents competing theoretical viewpoints about the factors that may potentially be influential in determining the outcome of cross-border Mergers and Acquisitions and therefore this study aims to summarize empirical findings to reach a conjoint result. This done through consideration of factors at structural level and organizational level, ensuring the success of cross-border M&As. The most important factor considered is the organizational culture and national level differences at the structural level in order to minimize the risk factor. Also related primarily to other structure of integration in also important and ensures success to the acquired organization.
Introduction
Mergers and acquisitions (M&As) have been a very popular strategic movement for global businesses, attaining growth, diversification, or profitability (Fowler and Schmidt, 1988). In fact, the process of cross border M&As that started in the 1980s continued throughout the 1990s until the financial crisis and is still vigorous (Houghton et al., 2003). Cross-border merger and acquisition (M&A) activity has continued to increase at a torrid pace during the past decade and a half, to the point that it has become a major strategic tool for growth of multinational corporations (Cartwright and Cooper, 1993). During the phase of 1980s the number of cross border acquisitions occurring globally has almost tripled. Thus, accounting for a significant proportion of total M&A activity by the early 1990s - 95 percent in the case of Japanese companies and 50 percent for European Union companies (Morison and Singh, 1994). Observing a temporary slowdown during the recessionary global economy of the early 1990s, the value of cross-border M&A reached a record high of US$181.7 billion within the first nine months of 1996 (The Economist, 1997).
There is a essential paradox in the growth strategies
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