Mergers and acquisitions (M&As) are complex and frequent business phenomena. Over the years, quite some research has been made on many different aspects of mergers and acquisitions, but the phenomenon is still far from understood. In this paper we analyze in total 57 doctoral dissertations that focus on mergers and acquisitions that have been presented and defended at Swedish Universities and Business Schools between the years 1971-2008. Our aim is to contribute to a more comprehensive picture of the state-of-the-art of the existing body of knowledge on mergers and acquisitions. In this first analysis we give a general overview of the dissertations.
Mergers and acquisitions have become a popular strategy for gaining growth. Studies show, however, high failure rates for acquisitions. Earlier literature concentrates on the strategic or organizational fit between companies and integration processes and fails to recognize the companies' external business relationships. An implicit assumption seems to be that through acquisition the market position of the target firm can be taken over. We argue that it is not always easy or even possible to take over a company's customer and supplier relationships. We elaborate on the various problems related to relationships that acquisitions may give rise to. Our conceptual discussion is illustrated with a case study from the graphics industry.
Purpose: Companies engage in business relationships for a variety of reasons, including specialization, product development, and building competitive networks. Research has demonstrated that mergers and acquisitions (M&As) may challenge ongoing business relationships. The purpose of this article is to investigate whether and how competition authorities consider business relationships when evaluating M&As.
Methodology: The article uses the documentation from 450 M&As reported to the Swedish competition authority to capture the way in which an authority evaluates M&As. The Swedish competition authority evaluation corresponds to other national and international evaluation procedures.
Findings: The findings indicate that the competition authorities neglect an important aspect of business life, namely companies forming business relationships. The competition authorities evaluate M&As on the basis of risk for price increases, and consequently disregard such issues as heterogeneity in demand and offerings, and values built into existing business relationships.
Originality/Value/Contribution: The article contributes to research on business relationships through exploring how a public authority deals with such relationships. It also contributes to research on mergers and acquisitions through examining how these activities are evaluated by competition authorities. Furthermore, the article contributes to competition research by reflecting on competition law concerning M&A regulations in relation to business relationships.