Integrating technology into merger and acquisition decision making

Merger and acquisition (M&A) decisions tend to be dominated by financial and business managers. However, given the growing importance of technology and innovation to firm competitiveness and the on-going importance of merger, acquisition and divestment activity, there are potential gains to be made by acquirers from better integrating technology issues into their M&A decision making. Not least it may help to avoid costly errors and reduce the failure rate of M&As. More positively, it may help acquirers to better realise value from the technological assets they acquire. Based on a three year study of mergers and acquisitions involving some of the UK's leading companies, we consider some of the technology issues that are likely to arise in the M&A process. We conclude by identifying four ways in which managers might better integrate technology issues into M&A decision making. © 1998 Elsevier Science Ltd. All rights reserved.