A Study on Headquarters Capabilities Needed for Successful M&As

Abstract

The effects of M&A on business have not been fully elucidated by earlier studies. One of the reasons is that M&A studies focusing on the cross-boundary transfer of resources often ignore tangible dynamic capabilities of organizational integration. These capabilities are inevitable factors because successful M&As need assessing and relocating acquired resources for post merger integration (PMI). This study sheds light on what are the headquarter capabilities, which are abilities of headquarter connecting M&A to business performance as a growth tool. We conducted interview surveys to understand which factors lead successful M&As, and then, identify seven capabilities for successful M&As. We also found that companies need to carefully connect actions made by these seven capabilities across M&A implementation phases (strategic planning, deal execution, and PMI).