A Project Management Approach to M&A Deals and their Post-Integration Projects: A Case Study
Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Mergers and acquisitions (M&A) projects have long been considered as a strategy for organizational growth and gain of market share. Top management teams of companies take M&As into consideration since it is faster and less costly compare to internal growth and development programs. M&A project has variety of benefits such as growth in market share, increase in shareholder wealth, access to new markets, technological advantages and so on and so forth. Another benefit of such projects is the expected synergies which happen in financial, production, value chain and technological aspects of the existing company. However, according to many authors there is a high rate of failure in M&A industry. One of the main reasons of failure identified as the poor performance of post-M&A integration projects. Based on literature, a project perspective to these highly complex projects will reduce the risk of failure and will result in successful performance of new companies. However, there is a research gap in this filed.
After identifying the research gap and formulating the problem statement, research was designed in order to study the applicability of a project management (PM) approach toward M&A and their integration projects. Through performing a case study on a Swedish company who has undergone a number of M&A projects, interviews were conducted with top management team involved in such projects in order to collect empirical data. Based on qualitative data analysis methods, the primary data was integrated into pattern and themes and then analyzed.
Based on the findings of the research, it was identified that in acquisition projects of small and medium size companies the strategic fit is more significant than organizational fit since the new company will dissolve completely and the rest of the integration is in control of the company. Furthermore, after identifying M&A projects as temporary organizations, three aspects: project organization, human resource and governance were verified based on literature. In the context of this study, human resource and governance is considered key elements in terms of acquisition projects. Finally, a framework was proposed in order to implement project management approach by fulfilling three dimension of PM which are project organization, project life-cycle and project governance.
Place, publisher, year, edition, pages
2010. , 60 p.
Mergers and Acquisitions, strategy, project management, integration phase, temporary organization, project life-cycle.
IdentifiersURN: urn:nbn:se:umu:diva-31699OAI: oai:DiVA.org:umu-31699DiVA: diva2:293922
UppsokSocial and Behavioural Science, Law
Wåhlin, Nils, Dr
Nilsson, Kerstin, Tf studierektor