What are the key factors explaining the success or failure of mergers?

Abstract

The main aim of this thesis is to identify the factors being able to explain the success or the failure of mergers. Though, the number of merger is continuously growing through the time, the rate of failure of these types of activity still remains high. This fact has brought always more researchers to investigate on this topic. Through mergers, companies might achieve growth and a better position inside the market. By implementing a merger plan, one organization might also improve its performance. On the other hand, we must address the fact that not all of the merger transactions are successful. Thus, what are the factors explaining the success or the failure of mergers? This thesis will try to answer to this question by showing some important concepts in the literature review, such as culture and the possible synergies. This work will also include two case studies regarding two mergers, the first case will concern the Exxon-Mobil merger and the second one the Daimler-Chrysler. Through the analysis and the comparison of the two cases, I will seek to find the similarities and the differences being able to lead us towards the key success factor of mergers. Particularly, this thesis will especially focus on the role of culture inside the change process. This topic will be also treated inside the third chapter of this thesis work. This thesis would like to guide the academic research towards the importance of some factors which have not been carefully considered previously and it would like to point out the importance role played by organizational culture. The empirical analysis will analyze and carry out a comparison between the two cases, trying to figure it out what went wrong and what were the factors which brought the new organization towards a success.