A Decision Model to Support Value Creation in Mergers and Acquisitions

In the context of Mergers and Acquisitions (M&As), degree of post-deal integration is regarded as a crucial factor since it directly affects the overall performance of the combined entity. As studies show, higher degree of integration is associated with on-going realisation of integration synergies and achievement towards higher level of performance. However, empirical evidence assert that all M&As are not capable of achieving the desirable degree of integration mainly due to appearance of cultural incompatibilities between deal partners. This is regarded as the matter of major concern since the issue contributes to high rate of integration failures. Regarding the significance of problem, this research has taken a risk mitigation approach and stepped towards identification of the extent to which deal partners are capable of being integrated after deal announcement. Using mixed methods in a case study-based research, conceptual and predictive models are developed and further validated.