Stonehouse et al. (2004)

Management > Global Strategic Management > Lectures > Independent Research > Stonehouse et al. > Alliances/Integration > Transnational M&A > Problems with integration > Success factors

Success factors

There are seven key success factors for an M&A:

1. Find a suitable target partner - in practice compromise is necessary, as the ideal partner may not exist
2. Evaluation of the target company's competitive position - a detailed evaluation is necessary, such as profitability, market share and product portfolio
3. Cultural compatibility - including management styles, which involves lots of pre-integration discussions to see if the managers get along
4. Structures - compatibility. It is best if they are both decentralised and have similar similar height and width
5. Locking in resources - they must be available post-integration. This includes key people, so learning and growth is continued
6. Valuing the stock price - this needs to be accurate and big enough to ensure ROI
7. Planning integration - the post-merger process must be planned as well, such as resistance

Collaborative ventures and strategic alliances

Types

Successful alliances and networks

Strategic management of networks and alliances