Type of Resource Interactions and Acquisition Success

39 Pages Posted: 18 Jun 2011

See all articles by Sayan Chatterjee

Sayan Chatterjee

Case Western Reserve University - Weatherhead School of Management

L. J. Bourgeois

University of Virginia - Darden School of Business

Date Written: June 1, 2011

Abstract

Strategy research on mergers and acquisitions has focused on classifying mergers into related, unrelated categories and recently according to strategic motives. By contrast, we focus on how the combined resources of the merging firms interact to create value. We identify five primary types of resource interactions and examine their inherent post-merger-integration challenges as well as their probabilities of successful value creation and capture. By using this lens, acquirers will be able to identify the primary sources of value in any acquisition that they are contemplating and anticipate post-merger obstacles in realizing this value. This framework will also enable managers to reconsider acquisition strategies that they have avoided because of the poor batting average of acquisitions in general.

Suggested Citation

Chatterjee, Sayan and Bourgeois, L. Jay, Type of Resource Interactions and Acquisition Success (June 1, 2011). Available at SSRN: https://ssrn.com/abstract=1865448 or http://dx.doi.org/10.2139/ssrn.1865448

Sayan Chatterjee

Case Western Reserve University - Weatherhead School of Management ( email )

10900 Euclid Ave.
Cleveland, OH 44106-7235
United States

L. Jay Bourgeois (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4833 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm

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