Persson, KarinLindau-Jonsson, Olivia2004-05-252007-01-172007-01-1720041403-85117http://hdl.handle.net/2077/2293Mergers and acquisitions (M&As) are popular means to potentially and immediately increase profitability of the firm today. Interestingly, the popularity of M&As does not seem to be affected by the fact that a surprisingly large part of the synergies expected from M&As are never fulfilled. Research has indicated a tendency among management to overlook the risks of value destruction after the deal is signed. In relation to this, the importance of considering factors affecting human actions and reactions has been emphasized. Current research in the business relationship and network fields has indicated that relationships have an influential role in the development of firms. The extent of previous relationship between the two parts has further been indicated to impact acquisition behaviour and its consequences. This, together with the importance of human factors in the M&A process, forms the platform from which our research departs. Hence, the purpose of this study is to explore the role of pre-M&A social relationships in the M&A process. In doing so we seek to deepen the current understanding of the processes and phenomena influencing the efficiency of M&A processes. Our findings are based on empirical data from four case studies and point to an important role of pre-M&A social relations in the M&A process. Firstly, during a pre-M&A relationship, soft synergies can be revealed and identified as they are put in practice. Hence, future potential can more accurately be evaluated in real-life situations before an M&A deal is signed, as such issues are difficult to predict from financial reports and balance sheets. Secondly, the social relations visualised opportunities for M&A for both selling and acquiring firms. Thirdly, it was also evident that the social relations partly contributed to open communication and a shortening of the first phase of the M&A process.134 pages606170 bytesapplication/pdfenMergers and acquisitionsprocess viewvalue destructionbusiness networksbusiness relationshipspre-M&A relationshipssocial relationssocial capital.DBusiness studies