The post-acquisition process: A broad perspective on the integration process of newly acquired subsidiaries - A case study of the Swedish car company Bilia AB

Abstract

During the recent decades, it has become evident that the post-acquisition process is pivotal for ensuring high levels of acquisition performance. This process, along with its main component, the integration process, is a complex matter to say the least. In order to provide a more comprehensible overview of how the process can be properly managed, this study aims to identify the most prominent aspects and issues that managers have to consider, and to provide insights into how these can be overcome. A broad perspective of the previous literature on the subject has been taken, of which a summarizing model is presented. Through a single case study, qualitative interviews have been conducted with representatives of the Swedish car company, Bilia AB, which is in its early stages of growing internationally through foreign acquisitions. By extensively analyzing the insights provided by earlier research on the post-acquisition process as well as by the interviewees, a revised conceptual model of the aforementioned process has been constructed. The conceptual model includes three identified determinants, or fits: organizational, strategic and cultural fit. These relate to the level of compatibility between the acquiring and the acquired company, which subsequently determines both the level of integration that is suitable for the acquired subsidiary as well as the potential synergy effects that can be realized in the post-acquisition process.