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Designing merger agreements to ease merger integration
Author(s) -
Schmidt Sascha L.,
Urlichs Robert,
Richter Ansgar
Publication year - 2008
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.20240
Subject(s) - negotiation , balance (ability) , forcing (mathematics) , business , process management , industrial organization , computer science , strategic management , marketing , sociology , medicine , climatology , physical medicine and rehabilitation , geology , social science
Many mergers fail as a result of difficulties in the integration phase. Such problems can arise when the corporate strategy concept of the merged firm does not build in a meaningful way on the actual corporate strategies of the predecessor organizations. Primarily addressed to practitioners, this article introduces the framework of a “merger scan” that enables executives negotiating a deal to analyze whether alternative versions of the new corporate strategy strike an optimal balance between the desire for continuity and the need for strategic renewal. Applying this framework helps executives allocate sufficient time and attention to those integration aspects that involve breaking with the directions of the predecessor firms and thus require change. © 2008 Wiley Periodicals, Inc.