A CRITICAL ANALYSIS OF FAILURE IN MERGERS AND ACQUISITIONS

Abstract

This study focuses on the discovery and examination of the reason of failures in mergers and acquisitions. The study has identified appropriate measurement criteria for pre and post-acquisition performance and proved that Strategic Logic, Organizational behaviors and Financial aspect are the three major determinants of M&A failure & developed a comprehensive model to successfully carry out M&A activity. And improving the rate of performance by eliminating the common mistakes, which generally becomes the part of reason for failure in M&A. The study comprises of review of relevant literature. The review is done with an identification of previous acquisition research paradigms, and the evolution of corporate acquisitions and its relationship to corporate strategies. This is followed by an identification of overall, post- acquisition performance. Analyses of prior research gave the foundation to development of an comprehensive model which was lacking in the world of M&A. Then, there is a discussion of the causes and objectives of corporate acquisitions. The next section deals with influences and problems in the overall acquisition management processes. This section also will explore details of the key factors involved in both the pre- and post-acquisition management processes. Then on the basis of Case Study analyses, Questionnaire and Prior research on M&A a Comprehensive Model is developed to carry out M&A activity and suggestions for future research is given.