University of Twente Student Theses
Achieving extraordinary fit : adopting simple rules to the target selection process in M&A
Siemerink, E.V. (2021) Achieving extraordinary fit : adopting simple rules to the target selection process in M&A.
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| Abstract: | Aim. A substantive body of research has shown that there are many antecedents for mergers and acquisitions (M&A) that lead to post-deal success. However, the process on how targets are selected, and what criteria are adopted in this process leave a gap in the literature to be filled. Moreover, simple rules as described by Eisenhardt and Sull (2001; 2015), create possibilities to better structure this process. Method. In this research, a literature study on 83 papers suggests that targets are screened in a certain order whereby they assess their expectations of a target by going through different categories. These categories are the management of a target, financing, products, services, markets, synergy, integration, size and location. The list of criteria is tested by doing semi-structured interviews with a sample of 11 Dutch M&A experts. Finally, simple rules are set up by organizing a focus group at Company Beta for better structuring a possible target selection process. Findings. Results show that the application of simple rules into this process gives the firm the ability to 1) better structure their target selection process by assessing the internal motives for M&A and 2) providing structure to the process while at the same time leaving room for flexibility. Contribution. The findings of this study contribute to the process perspective in M&A, where it is argued that a good process can lead to better decisions. Moreover, a list of rules for screening targets are offered, next to a framework on how to apply simple rules in the target selection process in firms. The implications for research and practice in M&A are discussed. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/85600 |
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