‘M&amp;A’ as a Global Market Phenomenon

Meynerts-Stiller, Kirsten; Rohloff, Christoph

doi:10.1108/978-1-83867-451-920191005

Cited by 3 publications

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“…Merger and acquisition (M&A) activity has reached unprecedented highs throughout the last decade ( Meynerts-Stiller and Rohloff, 2019a ). Despite the significant increase in the amount of transactions closed, many of them continue to fail over time ( Jiaxin, 2021 ).…”

Section: Introductionmentioning

confidence: 99%

Consequences of M&A team composition for deal outcomes: An inductive study

2022

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While Merger & Acquisition (M&A) activity has reached unprecedented levels over recent years, M&A failure rates remain high. In explaining these disappointing outcomes, previous studies barely focused on the teams that manage these M&A transactions. Furthermore, only scant information exists on team members’ roles and skill sets. With an aim to contribute to filling this gap, we inductively explore a composition logic of M&A teams and its consequences for M&A outcomes by following a grounded theory approach and conducting semi-structured interviews with 30 M&A professionals. We identify three prevailing team roles (project manager, expert and executor) which require a specific set of soft and hard skills that explain how M&A teams can enable M&A success in terms of deal execution and completion. Furthermore, we provide evidence to how aspects of project timing, such as deadlines and simultaneous projects, shape the team members’ work. Finally, our findings underline the importance of accumulating experience and learning effects on M&A deal outcomes, shaping both M&A team culture and the team members’ skill sets.

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Section: Introductionmentioning

confidence: 99%

Consequences of M&A team composition for deal outcomes: An inductive study

2022

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“…In Germany, the market for corporate control has accelerated since the German reunification in the 1990s. It has become a worldwide phenomenon, with a market for M&As with national and transnational activities in both directions (Jansen, 2016;Meynerts-Stiller & Rohloff, 2019;Mueller-Stewens, 2016a;Warter & Warter, 2017). The phenomenon is more aptly described by the term, 'global market for corporate control', because it is the international arena in which managers compete for the right to control corporate resources (Jensen, 1986;Jensen & Ruback, 1983;Meynerts-Stiller & Rohloff, 2019;Mueller-Stewens, 2016a;Warter & Warter, 2017).…”

Section: A the Global Market For Corporate Control: Competition For R...mentioning

confidence: 99%

“…It has become a worldwide phenomenon, with a market for M&As with national and transnational activities in both directions (Jansen, 2016;Meynerts-Stiller & Rohloff, 2019;Mueller-Stewens, 2016a;Warter & Warter, 2017). The phenomenon is more aptly described by the term, 'global market for corporate control', because it is the international arena in which managers compete for the right to control corporate resources (Jensen, 1986;Jensen & Ruback, 1983;Meynerts-Stiller & Rohloff, 2019;Mueller-Stewens, 2016a;Warter & Warter, 2017). The resulting shift of control due to M&A activities builds the reference point and background of major organisational changes influencing the PC of the employees involved, i.e.…”

Section: A the Global Market For Corporate Control: Competition For R...mentioning

confidence: 99%

An Exploration of the Effects of Mergers and Acquisitions on the Psychological Contract of SME Senior Managers

Kaerner

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Mergers and acquisitions (M&A) are strategies to increase the competitive advantage and management tools to gain access to strategic resources for the development of organisations. Therefore, the global M&A market is referred to as the market for corporate control, which ensures that resources are controlled by those who use them most successfully. The psychological contract (PC) includes the subjective expectations of senior managers (SMs) regarding their and the organisation’s mutual obligations. This paper examines the impact of pre- and early M&A phases on the PCs of SMs of small and medium-sized enterprises (SMEs) following the experience of friendly M&As with larger German corporations. These are European service companies in the construction and real estate sector. The qualitative research focuses on the content of the PCs of SMs in M&A scenarios and how they are influenced by pre-merger events, schemas or early phases of an M&A. Little is known about the PCs of SMs in the context of major organisational changes. When SMEs are taken over by larger companies, SMs experience a lot of changes, as they go from being independent entrepreneurs to employed managers, who must accept given structures, including for their team, which is embedded in a larger organisation. The findings indicate that the content of SMs’ PCs plays a decisive role in whether the planned M&A initiatives will be pursued at all, which in the cases investigated even took on the significance of knock-out criteria. The roles and context-specific content of PCs were discovered, as well as motives for M&As. The data was based on the observation of 31 multi-stage pre-merger exploratory workshops with 41 SMs from 18 potential target companies and 21 SMs from the acquiring side, and 13 extensive semi-structured in-depth interviews were conducted with SMs who had experienced M&A activities as survivors or agents. The research identified ten major themes providing valuable indications of how reflecting on the PC can be used to enable early mutual expectation management and thus foster sustainable integration. It is recommended to revise M&A processes to be more responsive to individuals and personal factors and to align human resources’ due diligence by considering the building blocks of the PC.

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“…Merger and acquisition (M&A) activity has reached unprecedented highs throughout the last decade (Meynerts-Stiller & Rohloff, 2019a). Despite the significant increase in the amount of transactions closed, many of them continue to fail over time (Jiaxin, 2021).…”

Section: Introductionmentioning

confidence: 99%

Shaping M&A Deal Outcomes: From Failure to Enabling Better M&A Performance

Paumen

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The M&A literature is broad and fragmented. It studies M&A success and failure from various disciplinary perspectives and examines M&A deal outcomes at separate stages of the M&A process. Despite the increase in M&A activity, M&A failure rates continue to be high throughout recent years. This dissertation comprises four separate studies which shed light on this issue. Paper I is a literature review in which I systematically analyze studies on M&A failure. The findings reveal three blind spots of the current M&A literature which need to be addressed. These are a) the need for clarity on the definition and operationalization of M&A failure, b) the need for more integration among disciplines, and c) the need to adopt a more processual perspective on M&A phases instead of a within-phase analysis. The consequent three papers are empirical studies which contribute to filling the identified research gaps. Paper II is a quantitative study on target pricing which takes different types of bidders into account. I conclude that more research is needed to understand the outperformance of private equity funds. As this stream of literature is in a nascent stage, I call for more qualitative and explorative research on the topic. In a consequent qualitative study, I explain M&A deal outcomes with regard to the private equity bidder type. In this study, three characteristics (i.e., organizational set-up, private equity investors’ professional identities, and an integrative work approach) are identified which were brought together into a theoretical framework that explains how private equity professionals can enable better M&A performance. The findings further underline the effectiveness of specific incentivization approaches applied in private equity funds. In the fourth study, the research focus is on the firm’s organizational culture, M&A teams, and individual professionals. Three prevailing team roles (i.e., project manager, expert and executor) are identified which require a specific set of soft and hard skills that explain how M&A teams can enable M&A success in terms of deal execution and completion. Furthermore, evidence to how aspects of project timing, such as deadlines and simultaneous projects, shape the team members’ work is provided. Finally, the findings underline the importance of accumulating experience and learning effects on M&A deal outcomes, shaping both the M&A team culture and the team members’ skill sets.

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‘M&A’ as a Global Market Phenomenon

Cited by 3 publications

References 0 publications

Consequences of M&A team composition for deal outcomes: An inductive study

Consequences of M&A team composition for deal outcomes: An inductive study

An Exploration of the Effects of Mergers and Acquisitions on the Psychological Contract of SME Senior Managers

Shaping M&A Deal Outcomes: From Failure to Enabling Better M&A Performance

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