Analysis of the Key Factors for the Success or Failure of Enterprise Mergers and Acquisitions
Year: 2024
Type: article
Abstract: Mergers and acquisitions (M&A), as a means of optimizing resource allocation, have a history of over 100 years in the West and have sparked five major waves of M&A activity with global impact. Since China's reform and opening-up, there have been over 20 years of M&A practices in the country, resulting in a substantial body of research. However, there remains a lack of systematic studies summarizing the factors influencing the success or failure of M&As. Additionally, there is relatively limited research on how to achieve the intended strategic goals of M&A through effective post-merger integration strategies and how to avoid failure. Further in-depth research is needed to address these gaps. This paper aims to analyze the core factors influencing the success or failure of M&A by drawing upon relevant literature. It identifies that M&A outcomes are affected by a range of factors, including post-merger integration measures, organizational and personnel issues, information asymmetry, business philosophies, management systems, organizational culture, government and corporate behaviors, financing conditions, and regulatory policies. The study also finds that both subjective and objective factors—such as strategic planning, cultural integration, organizational restructuring, human resource management, market conditions, and legal risks—play a role in determining the success of M&As.
Author: Mengyao Han
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405590837