A empirical evaluation of pre- and post- merger success: Factors and the impact of culture on mergers and acquisitions in Kenya
Abstract
Mergers and acquisitions are increasing due to the competitive and financial pressure of
globalization. Previous research shows that there is a high failure rate in M&A. There is
much written on ways and means that should be adopted by companies to ensure success.
This study outlines the importance of balanced management of pre- and post-merger
success factors and the impact of culture. Impact of culture has been considered
separately since it affects achievement of other success factors and hence overall success
of an M&A.
The study based on a questionnaire, suggests that the achievement level of M&A
objectives of acquiring companies in Kenya should be comparable to findings of similar
studies; namely the objectives that drove the deal were met only half of the time. The
results indicate that impact of culture together with pre-merger phase success factors -
clear strategy, clear search criteria, strong integration team, thorough screening and due
diligence, cultural due diligence, defined end state and preparing people psychologically
-and post-merger phase success factors -coherent integration strategy, strong integration
team, efficient and consistent communication, speedy implementation and aligned
measurements -are becoming increasingly relevant. Even though they differ in their
importance for individual companies in the population, they are all considered essential to
increasing success rate of corporate combinations
Citation
A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of NairobiPublisher
Business Administration