The optimization of success rates in M&A processes with regard to the target search process

Abstract

ABSTRACT In the vibrant environment of merger and acquisition [M&A] processes, failure rates are still considered to be extremely high. There is a vast amount of previous research, but it has mainly focused on merger or post-merger analysis, and is often limited to single success factors and their influence on overall performance outcomes. Limited insight on comprehensive interrelations between pre-and post-merger stages is available. This thesis provides a detailed investigation of the pre-merger stage, the complex interrelations with success factors examined in post-merger analysis, and an approach for including these factors in the target search. Several studies have been examined, success factors were defined and then tested on their individual utility for the target-search processes. Performing an M&A process is an interrelated, multistage endeavor and therefore a comprehensive approach is advisable. To gain insights from practical implementation, experts from M&A departments and consultancies were interviewed. The results include interfaces that require further investigation in the future, including potentials for optimization. A framework-model for supporting companies during the critical process of target-screening, developed through the reverse-engineering the success factor shown in research and the insights from experts, is suggested to optimize success rates in M&A.