Lecture notes Business Management (5007ICT)

5024SSL
Managing People in a Global Context


Lecture Seven:
Cross Border Mergers &
Acquisitions

, Objectives
 Describe the M&A process

 Understand the reasons for Cross-border M&As

 Explain why cross border M&As succeed or fail

 Understand different integration typologies

 Explore the human challenges associated with M&As

, Key Terminologies
Merger:
 Agreement between two companies to
join their operations together, the
partners are often equal
 Results in the formation of a new
company
Acquisition:
When a financially stronger company
purchases over 50% of shares of
another company and folds it into its
operation
No new company is formed as
acquiring firm keeps its legal identity
while integrating a new company into its
own activities


Source: Dowling et al., 2012