Analysis of merger & acquisition frameworks from a deal rationale perspective in technology sector
Name
1119537668-MIT.pdf
Size
7.17 MB
Format
Adobe PDF
Checksum (MD5)
e3d5f0608efc1d2126c9fde88a55f821
Author(s)
Narayanan, Sridhar,S.M.Massachusetts Institute of Technology.
Advisor(s)
Bruce G. Cameron.
Alternative Title
Analysis of merger and acquisition frameworks from a deal rationale perspective in technology sector
Date Issued
2019
Publisher
Massachusetts Institute of Technology
Abstract
Mergers and Acquisitions (M&A) activity has been a widely researched area over the past century by both academic and industry experts. This paper summarizes the various frameworks that have been developed to explain the motivations to conduct M&A. While the frameworks themselves have been developed based on surveys of past success and failures, they are heavily relied upon by various M&A schools of thought to advise present and future strategies for the industry. In comparing these frameworks, the paper summarizes how deal rationales drive success or failure of M&A transactions. I analyze the HP-Autonomy case study to demonstrate how the different frameworks would approach the deal in question. I also look at the failure modes demonstrated in the deal to better evaluate relevance of the frameworks to the intended deal rationale. Further I talk about how innovation fuels inorganic growth for companies in the technology domain. In doing so, I focus on the relevance of these frameworks to the technology domain and how the industry should approach and utilize these M&A frameworks. Based on the studies and the key concerns of the technology domain, I conclude on the possibility of McKinsey Framework being a truly comprehensive Framework that can be used as a basis for understanding the motivation for a M&A transaction. In summary, this paper will provide an overview of the M&A frameworks developed over past 6 merger waves, compare them within the scope of technology domain and evangelize on their applicability and relevance.
Description
Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, 2019
Cataloged from PDF version of thesis.
Includes bibliographical references.
Subjects
Engineering and Management Program.
System Design and Management Program.
MIT Department
Massachusetts Institute of Technology. Engineering and Management Program
Terms of Use
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