Sucess Factors in Merger and Acquisition
Master thesis Autumn semester 2007 Supervisor: Professor Tomas Blomquist Authors: Hoang, Thuy Vu Nga Lapumnuaypon, Kamolrat
Critical Success Factors in Merger & Acquisition Projects
A study from the perspectives of advisory firms
ACKNOWLEDGEMENTS
First of all, we are grateful to our supervisor, Professor Tomas Blomquist, for his guidance and recommendations throughout the process of writing our thesis. His support is of vital importance to the successful completion of this thesis. We also would like to thank Professor Anders Söderholm and Professor Ralf Müller for their initial guidance by commenting on our research proposal and providing us with some industry contacts. We would like to thank all interviewees and respondents who contributed their valuable time and useful information to this study. Last but not least, our classmates are entitled a ‘thank you’ for challenging our research study and providing us with valuable suggestions.
Umeå, January 2008.
ABSTRACT
Mergers and acquisitions (M&A) in the corporate world are achieving increasing importance and attention especially in the advent of intense globalization. This is evident from the magnitude and growth of deal values and resultant ‘mega-mergers’ transacted in recent times. As expert advisory are sought in M&A activities to facilitate the undertaking and maximise the value of the transaction, advisory firms begin to play a more significant and at the same time lucrative role in M&A activities, to the extent of determining the outcome of such projects. Being an area of limited research, it is thus valuable to investigate what M&A advisory firms view as critical success factors to the projects they undertake. Consequently, the research question of “What are the critical success factors for merger & acquisition projects in the view of merger & acquisition advisory firms” has been raised. A list of ten critical success factors for M&A projects is firstly identified from an extensive literature
Critical Success Factors in Merger & Acquisition Projects
A study from the perspectives of advisory firms
ACKNOWLEDGEMENTS
First of all, we are grateful to our supervisor, Professor Tomas Blomquist, for his guidance and recommendations throughout the process of writing our thesis. His support is of vital importance to the successful completion of this thesis. We also would like to thank Professor Anders Söderholm and Professor Ralf Müller for their initial guidance by commenting on our research proposal and providing us with some industry contacts. We would like to thank all interviewees and respondents who contributed their valuable time and useful information to this study. Last but not least, our classmates are entitled a ‘thank you’ for challenging our research study and providing us with valuable suggestions.
Umeå, January 2008.
ABSTRACT
Mergers and acquisitions (M&A) in the corporate world are achieving increasing importance and attention especially in the advent of intense globalization. This is evident from the magnitude and growth of deal values and resultant ‘mega-mergers’ transacted in recent times. As expert advisory are sought in M&A activities to facilitate the undertaking and maximise the value of the transaction, advisory firms begin to play a more significant and at the same time lucrative role in M&A activities, to the extent of determining the outcome of such projects. Being an area of limited research, it is thus valuable to investigate what M&A advisory firms view as critical success factors to the projects they undertake. Consequently, the research question of “What are the critical success factors for merger & acquisition projects in the view of merger & acquisition advisory firms” has been raised. A list of ten critical success factors for M&A projects is firstly identified from an extensive literature
Bibliography: 70 Brotherton, B., and Shaw, J., 1996 73 Lim, C.S., and Mohamed, M.Z., 1999 74 PEI (Private Equity Info) Services Ltd., 2006 75 Wateridge, J., 1998