Mergers & Acquisitions (M&A) are an increasingly important instrument for direct investment and growth in companies all over the world. They are very complex procedures, prior researches show that approximately 64% of all M&A‘s do not produce the expected benefits, more than 50% do not even repay the investment (Boglarsky, 2005). Common reasons, assumed by experts, are lacking preparation, management mistakes and insufficient compatibility. The explanation why M&A‘s are still so attractive are the very high profit opportunities. (Wirtz, 2003)
This research aims to investigate on the importance of strategic management and corporate governance for the success of M&A‘s. It will provide deeper understanding of the relationship between those very important aspects and the success of one of the most critical investment strategies. To conduct the research, two very different Mergers of DaimlerChrysler and Sony Ericsson were analysed and compared.
The DaimlerChrysler merger on the one hand is often regarded to as one of the best examples of failure. Taking the situation before the merger, it could have been a very successful event. Mismanagement and lacking implementation of corporate governance though, destroyed every possibility of a profitable future.
Sony Ericsson on the other hand is a very successful Joint Venture, even though there were some difficulties at the beginning. Thanks to a very clear vision, culture and the determination to learn, Sony Ericsson is today one of the leading companies in the mobile market.
We are interested to see, how the theory of mergers and acquisitions can be applied to companies of our day to day life and how important strategic management and corporate governance really are for the success of a company.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Research Question
- Methodology
- Literature Review
- Mergers and Acquisitions
- Analysis of Data and Findings
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to explore the relationship between corporate governance and strategic management and the success of mergers and acquisitions. It analyzes the cases of DaimlerChrysler and Sony Ericsson to understand how these critical aspects impact the outcome of such investments. The study intends to provide insights into the importance of these elements in achieving successful mergers.
- The significance of corporate governance and strategic management in mergers and acquisitions
- The impact of management mistakes and insufficient compatibility on merger success
- The role of clear vision, culture, and learning in achieving successful mergers
- The application of merger and acquisition theory to real-world companies
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the context for the research by highlighting the importance of mergers and acquisitions as an investment tool. It introduces the research question and the two case studies – DaimlerChrysler and Sony Ericsson – chosen for analysis. The introduction also presents the research methodology, relying primarily on secondary data from books, journal articles, and online sources.
The research question, encompassing two hypotheses, delves into the relationship between corporate governance and strategic management and their impact on merger success. This section outlines the key areas of investigation for the study. The methodology chapter discusses the use of secondary data and the process of gathering information on M&A success, corporate governance, and strategic management. It emphasizes the selection of DaimlerChrysler and Sony Ericsson as representative case studies.
The literature review section focuses on the definition and importance of mergers and acquisitions, drawing on the work of Sherman, Hart, and Wirtz. It provides insights into the various motives and participants involved in mergers and acquisitions, highlighting the importance of strategic, financial, and personal considerations.
Schlüsselwörter (Keywords)
Mergers & Acquisitions, Corporate Governance, Strategic Management, DaimlerChrysler, Sony Ericsson, Success, Failure, Investment, Management Mistakes, Compatibility, Vision, Culture, Learning.
- Citar trabajo
- Svenja Grüsgen (Autor), Stelios Kyriakides (Autor), Constantia Venizelou (Autor), Maria Papadou (Autor), Christos Alexandrou (Autor), 2010, Mergers & Acquisitions - Success or Failure? , Múnich, GRIN Verlag, https://www.grin.com/document/171321
