Analysis of the effectiveness of M&A with a focus on the size of the operation. ALTRAN case study

Abstract

In this thesis we will initially explore the Mergers and Acquisitions market and actual trend that fostered in the last decades. First of all, we will distinguish the types of M&A, briefly describing them, and the major motivations that push a company to begin such a process; then we will see the pros and cons of this operation. We will analyse the actual market trend that made this term so common in the current economy, nationally, but also globally, observing also the cross-border acquisition and all the consequences that derive from it. We will examine the possibility that this operation brings us against a market with free competition, creating monopolies and with antitrust authorities that fail to keep up with this problem with the right timing.

After that we will study M&A from the point of view of the size of it, defining and differentiating BIG and SMALL acquisitions, depending on the size of the acquired company compared to the company that acquires it. We will analyse the differences that arouse these two options, considering mainly company’s integration, synergies and all the problem that can came out from this. We will then explore some examples of success and failure that history gives us, trying to understand the possible causes.

In the third paragraph Altran group is presented, with an historical overview of the company, from birth to becoming what today is the global leader in engineering and R&D services, with a global network that cover more than 20 countries. After that, the group strategy is analysed, focusing on the propensity for acquisitions in order to expand and grow the business.

In the fourth chapter Altran’s strategy is discussed, analysing all the acquisition under the point of view of the size and effectiveness of these operations during the past years. An analysis will be conducted on the company growth and in the success or failure of these operations, trying to find a result on the comparison between large and small acquisitions, looking for the most effective solution.

Before the conclusion, a chapter will be dedicated to the new technology solutions that are deploying nowadays, with the aim of improving the feasibility and the results in this field. Through these new objects, manager can focus their attention more on human capital problems, that are relatively more difficult to solve with material objects or technologies, and that are critical to the overall success of the operation.

Conclusions will discuss the results of the case study and then try to give some suggestions on what should be the behaviour in the future, laying the foundations for some considerations in what is becoming one of the most famous trend for the economic growth in the new millennium.