M&A and Gaming Simulation

Abstract

Merger and Acquisition (M&A) has become more and more popular these days. While M&A is aneffective strategy, it also has a big risk for companies. According to the study in U.S., over 60% of M&Aended in decreasing the shareholder value. What is worse,even though M&A is one of the biggest bet for thecompanies, we still don't have the clear answer for the reason of those failures. The previous studies aremostly based on comparing success cases and failure ones. However, since M&A is a dynamic activity andinvolves many stakeholders, surveying the past cases may not be enough and we need the way to simulatethis dynamics. Thus, in this paper, we would like to emulate M&A activity as gaming and aim to find theinsights on success / failure factor of M&A.