Measuring post-merger success: Integration processes and human factors

Mergers and acquisitions (M&As) are arguably the most popular and influential form of business investment. So much so, that in the last 10 years the level of M&A activity in the UK construction industry has increased significantly as companies seek to gain competitive advantage. Whilst the majority of additional M&A activity has been undertaken with emphasis on growth, the reality is that only approximately 37% of M&As achieve the level of success forecast at initial outset. It is well understood that few, if any, corporate resource decisions can change the value of companies as quickly or dramatically as major M&As, however often too much emphasis is placed on the pre acquisition stage - due diligence. Companies often fail to realise the importance of the post merger stage, integration, which can be detrimental to deals. While stakeholders involved in M&As will focus on effectiveness, efficiency, growth potential and increased profitability, recent research shows that companies are now concentrating more on the less documented, human factors which can affect M&A performance and the success of M&A transactions. Based on a literature review across various disciplines, both nationally and internationally, the ongoing doctorate study focuses on the human factors and processes which affect post-acquisition integration and success of M&As. Whilst the future research direction is still under development, the objective is to develop a framework, which will enable the measurement/benchmarking of human integration performance in future M&A.