Mergers and acquisitions in a new economy - An opportunistic approach towards organisational changes

Abstract

The overall objective of this thesis is to create a broader understanding of how mergers and acquisition processes are planned and managed by firms operating in the new economy. The purpose is to get a picture of a common pattern of behaviour, including what drives the processes and how the transactions are carried out.

The theoretical approach of the study sees M&As as a process consisting of an idea, decision-making, and integration phase. In addition, it is also suggested that M&As cannot be looked upon as merely internal processes. In order to understand the underlying driving forces, environmental factors must also be taken into consideration.

The empirical data of the thesis is based on case studies in six Swedish companies representing the new economy. Data has mainly been collected by personal interviews with top managers in the companies.

The results are divided into three different themes, describing and explaining the logic behind M&As in the new economy.

· The Uncertain M&A Process the strong uncertainty in the industry results in the process being driven more by mimetic factors than analytic evaluated facts. · The Pragmatic M&A Process the short-term perspective of both the managers and the stakeholders makes the process more pragmatic than analytic. · The Environmental Dependent M&A Process the high degree of environmental dependency creates a process that is strongly formed by companies' audience, such as financiers and customers.