Why do the majority of merger and acquisitions fail?
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
In the last decade, there has been a great increase in the number of mergers and
acquisitions all over the world. This enhancement of the number of transactions is
included in the most of the previous studies but moreover, many of these studies show
that the majority of the mergers and acquisitions fail in the objective of creating value
for the shareholders. This failure ratio is the reason which leads us to the next research
question: why do the majority of mergers and acquisitions fail?
In this study, we introduce the basic concepts that must be known before answering the
research question and the reasons that other authors have pointed out for explaining this
After this theoretical background, we conduct a comparative research of four cases,
some of them with a successful result and some others with a failure one, in order to
determine the key factors that explain the reasons why some of the mergers and
acquisitions fail or success.
The study shows that there is a wide range of features when determining this failure or
success. The analysis of the four case studies indicates that most of the reasons for this
failure or success were previously considered by other authors, but some new reasons
will be presented.
Place, publisher, year, edition, pages
Umeå: Handelshögskolan vid Umeå universitet , 2007. , 93 p.
merger and acquisitions, failure
IdentifiersURN: urn:nbn:se:umu:diva-1289OAI: oai:DiVA.org:umu-1289DiVA: diva2:140589
Gallstedt, Margareta, Director of studies