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This comprehensive overview of Mergers and Acquisitions (M&A) covers essential topics including definitions, market size, and reasons for M&A activities. It explores potential problems, success factors, and causes of failure. The lecture delves into key aspects of demergers, integration drivers, and the importance of cultural compatibility for successful partnerships. Additionally, it outlines the M&A process and highlights criteria for determining types of M&A based on autonomy and strategic interdependence. Learn about the current state of M&A and its implications in today's business landscape.
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What is M&A? http://www.youtube.com/watch?v=P0hMSr6bZr4
Lecture Topics Covered • Definitions • Size of M&A market • Reasons – 15 • M&A Problems • Success Factors • Failure Causes • DEMERGER • Integration Drivers – Suitable partner’s value add; culture compatibility, integration enablers
M&A : A Commercial Example (source: http://www.tompkinsinc.com/strategic-market-planning/merger-acquisition-strategy/)
Success Drivers for M&A http://www.youtube.com/watch?v=sQ6xACl8hJk
Key Success Factors Organisational Integration http://www.youtube.com/watch?v=9BxWL4dRENI Cultural Drivers in M&A http://www.youtube.com/watch?v=2rir4lammZU
M&A Integration Approaches Need for Strategic Interdependence Low High 2 Criteria for determining the type of M&A Need for Autonomy Need for Strategic interdependence High Preservation Symbiosis Need for org Autonomy Holding Absorption Low • Need for Strategic Interdependence to create value via: • Resource sharing • Functional skills transfer • General management skills transfer • Combination benefits egleveraing cash reserves, borrowing capacity, customer base, added purchasing power, etc • Organisational Autonomy for preserving strategic capacity acquired via M&A: • How much autonomy • Which areas of autonomy
China’s M&A Developments PDI - Power Distant Index (equality contexts) IDV - Individualism Vs Group MAS - Masculine VS Feminine UAI - Uncertainty Avoidance Index LTO - Long Term Orientation (source : http://www.chinadaily.com.cn/cndy/2013-04/17/content_16413534.htm)
Current Issues in M&A http://www.youtube.com/watch?v=E1Bho5naq1g