Analysis of merger & acquisition frameworks from a deal rationale perspective in technology sector
Author(s)Narayanan, Sridhar,S.M.Massachusetts Institute of Technology.
Analysis of merger and acquisition frameworks from a deal rationale perspective in technology sector
Massachusetts Institute of Technology. Engineering and Management Program.
System Design and Management Program.
Bruce G. Cameron.
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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.
Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, 2019Cataloged from PDF version of thesis.Includes bibliographical references.
DepartmentMassachusetts Institute of Technology. Engineering and Management Program; System Design and Management Program
Massachusetts Institute of Technology
Engineering and Management Program., System Design and Management Program.