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Multiple Perspectives of Mergers and Acquisitions Performance

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Systemic Flexibility and Business Agility

Part of the book series: Flexible Systems Management ((FLEXSYS))

Abstract

Mergers and acquisitions (M&A) have emerged as multiple-purpose strategies used by corporate firms for value creation, value enhancement, as well as for defensive purposes for sustainable growth and development. Sustainable development requires companies’ continuous attempts to identify expected opportunities and prompt actions to exploit the same before the rivals/competitors. Corporate firms need to examine continuously, the compatibility of their organization with the changing environment; they require foreseeing all possible obstacles in the efficient operations of the firm. In view of large failure rate of M&A suggested in available literature, the study proposes the analysis of M&A performance, considering multiple perspectives of M&A performance. Comprehensive analysis of M&A performance is proposed considering all possible financial and nonfinancial perspectives likely to be influenced by M&A decisions; for the purpose, a set of 48 parameters under the broad categorization of situations, actors, processes, and performance parameters is proposed. Proposed framework represents a flexible framework, which could be modified with the change in circumstances, firm, industry, or environment. Analysis of multiple perspectives of M&A performance, along with providing a holistic view of M&A performance, is supposed to be useful for continuous evaluation and monitoring of M&A performance. It is likely to facilitate the collective segregated view of the M&A performance in terms of lead as well as lag parameters, thereby helping to spot the weak and strong parameters and initiating the corrective actions accordingly; thus, facilitating longevity of M&A decisions, which perhaps seems requisite in present scenario, where M&A deal with collapse in short period of time.

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Notes

  1. 1.

    Quoted in—“M&A Integration—How to do it. Planning and delivering M&A integration for business success”—by Danny A. Davis. First edition 2012 published by John Wiley & Sons.

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Authors and Affiliations

  1. Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

    Anshu Agrawal,  Sushil & P. K. Jain

Authors
  1. Anshu Agrawal
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  2. Sushil
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  3. P. K. Jain
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Correspondence to Anshu Agrawal .

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Editors and Affiliations

  1. Department of Management Studies, Indian Institute of Technology Delhi,, New Delhi, India

    Sushil

  2. Johannes Kepler University Linz, Linz, Austria

    Gerhard Chroust

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Agrawal, A., Sushil, Jain, P. (2015). Multiple Perspectives of Mergers and Acquisitions Performance. In: Sushil, ., Chroust, G. (eds) Systemic Flexibility and Business Agility. Flexible Systems Management. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2151-7_23

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