Failure Despite the goal of performance improvement, results from mergers and acquisitions (M&A) are often disappointing compared with results predicted or expected. Numerous empirical studies show high failure rates of M&A deals. Studies are mostly focused on individual determinants. A book by Thomas Straub (2007) "Reasons for frequent failure in Mergers and Acquisitions"[] develops a comprehensive research framework that bridges different perspectives and promotes an understanding of factors underlying M&A performance in business research and scholarship. The study should help managers in the decision-making process. The first important step towards this objective is the development of a common frame of reference that spans conflicting theoretical assumptions from different perspectives. On this basis, a comprehensive framework is proposed with which to understand the origins of M&A performance better and address the problem of fragmentation by integrating the most important competing perspectives in respect of studies on M&A. Furthermore, according to the existing literature, relevant determinants of firm performance are derived from each dimension of the model. For the dimension strategic management, the six strategic variables: market similarity, market complementarities, production operation similarity, production operation complementarities, market power, and purchasing power were identified as having an important effect on M&A performance. For the dimension organizational behavior, the variables acquisition experience, relative size, and cultural differences were found to be important. Finally, relevant determinants of M&A performance from the financial field were acquisition premium, bidding process, and due diligence. Three different ways in order to best measure post M&A performance are recognized: synergy realization, absolute performance, and finally relative performance.
failure despite the goal of performance improvement results from mergers and acquisitions (m&a) are often disappointing compared with results predicted or expected numerous empirical studies show high failure rates of m&a deals studies are mostly focused on individual determinants a book by thomas straub (2007) "reasons for frequent failure in mergers and acquisitions"[] develops a comprehensive research framework that bridges different perspectives and promotes an understanding of factors underlying m&a performance in business research and scholarship the study should help managers in the decision-making process the first important step towards this objective is the development of a common frame of reference that spans conflicting theoretical assumptions from different perspectives on this basis a comprehensive framework is proposed with which to understand the origins of m&a performance better and address the problem of fragmentation by integrating the most important competing perspectives in respect of studies on m&a furthermore according to the existing literature relevant determinants of firm performance are derived from each dimension of the model for the dimension strategic management the six strategic variables market similarity market complementarities production operation similarity production operation complementarities market power and purchasing power were identified as having an important effect on m&a performance for the dimension organizational behavior the variables acquisition experience relative size and cultural differences were found to be important finally relevant determinants of m&a performance from the financial field were acquisition premium bidding process and due diligence three different ways in order to best measure post m&a performance are recognized synergy realization absolute performance and finally relative performance