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Integration: The Critical M&A Success Factor
Author(s) -
Venema William H.
Publication year - 2015
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22046
Subject(s) - due diligence , negotiation , valuation (finance) , database transaction , business , mergers and acquisitions , closing (real estate) , plan (archaeology) , process (computing) , risk analysis (engineering) , critical success factor , industrial organization , economics , finance , process management , computer science , political science , law , history , programming language , operating system , archaeology
Most mergers and acquisitions (M&As) fail to meet the expectations of the purchasers. It is clear that the due diligence, valuation analysis, and negotiation that precede the closing of a transaction cannot guarantee its success. Instead, the synergies and assumptions that supported the decision to acquire a target business will be realized only if the purchaser effectively integrates the target. Unfortunately, many purchasers either fail to plan the integration of the target adequately or conduct the integration process too slowly. The author of this article explains how to draw up a good integration plan that will boost the chances of M&A success. © 2015 Wiley Periodicals, Inc.