In the last decade, there has been a great increase in the number of mergers and acquisitions all over the world. This enhancement of the number of transactions is included in the most of the previous studies but moreover, many of these studies show that the majority of the mergers and acquisitions fail in the objective of creating value for the shareholders. This failure ratio is the reason which leads us to the next research question: why do the majority of mergers and acquisitions fail? In this study, we introduce the basic concepts that must be known before answering the research question and the reasons that other authors have pointed out for explaining this failure ratio. After this theoretical background, we conduct a comparative research of four cases, some of them with a successful result and some others with a failure one, in order to determine the key factors that explain the reasons why some of the mergers and acquisitions fail or success. The study shows that there is a wide range of features when determining this failure or success. The analysis of the four case studies indicates that most of the reasons for this failure or success were previously considered by other authors, but some new reasons will be presented.

This study examines macroeconomic and industry-level factors (with particular emphasis on the business cycle) on industry-level merger activity. In a sample of US mergers from 1979 to 2006, we find that industry level mergers are highly pro-cyclical. The business cycle has a positive and significant impact on both horizontal and non-horizontal mergers, even after controlling for other macroeconomic and industry-level effects. Although macroeconomic variables have similar effects on both horizontal and non-horizontal mergers, industry-level factors vary significantly between the two types of mergers. Horizontal mergers are much more aligned with neo-classical theories, while non-horizontal mergers are more affected by financing constraints and overvaluation. We also find that the determinants and financing preferences of industry-level mergers vary greatly across the business cycle stages, which suggests that the motivation for mergers changes in different economic conditions.

Ett företags organisationskultur består av ett gemensamt värdesystem som har en meningsskapande funktion för de anställda i företaget som identifierar sig med organisationen. I en företagsfusion, där två eller flera företag går samman, har det visat sig vara svårt att förena olika organisationskulturer på grund av motstånd från de anställda. Tidigare forskning kring detta har till stor del fokuserat på de anställdas agerande i en fusion. Syftet med denna studie var att undersöka hur anställdas meningsskapande i en fusion påverkades av deras identifikation med organisationen. Med en kvalitativ intervjustudie undersöktes hur anställda i fyra företag hade upplevt en fusion av företagen. Resultatet visade att även om förändringsprocessen hade upplevts negativt av samtliga deltagare varierade upplevelsen av det nya företaget och dess kultur utifrån deltagarnas tidigare bolagstillhörighet. Analysen visade att identifikationen med de tidigare organisationskulturerna påverkade de anställdas menings-skapande i situationen och därmed skapandet av en ny gemensam organisationskultur.

This study examines macroeconomic and industry-level factors (with particular emphasis on the business cycle) on industry-level merger activity. In a sample of US mergers from 1979 to 2006, we find that industry level mergers are highly pro-cyclical. The business cycle has a positive and significant impact on both horizontal and non-horizontal mergers, even after controlling for other macroeconomic and industry-level effects. Although macroeconomic variables have similar effects on both horizontal and non-horizontal mergers, industry-level factors vary significantly between the two types of mergers. Horizontal mergers are much more aligned with neo-classical theories, while non-horizontal mergers are more affected by financing constraints and overvaluation. We also find that the determinants and financing preferences of industry-level mergers vary greatly across the business cycle stages, which suggests that the motivation for mergers changes in different economic conditions.

The following is the presentation of our master thesis study which intended to studied from a Human Resources perspective the M&A process. “What defines the integration achievement in a M&A process from a organizational level perspective?” This represents the main issue to answer and discuss about. It was conducted by the analysis of New Wave Group and Orrefors Kosta Boda acquisition process as the case study, representing the reality field and source of practical implications. To answer this research question, it was selected some of the most important elements of the Human Resources Strategies like Leadership and communication, motivation and commitment. Moreover, two main stages made up the attention of our study; the pre stage negotiation, and the post acquisition phase. The principal outcome constitutes the analysis in practical and theoretical terms, of the special condition of acquisitions with one dominant part constituting the “big saviour” and how this change is traduced into the integration process.

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A merger of steel mills has arisen up in the global steel industry. What is the reason to activate those steel mills involved in such a kind of business action, even those steel mills are with a mass scale. According to the expert's prediction, only ten to twelve steel mills will be survived after ten or twenty years and each steel mill will with a capacity over fifty million tons. Actually, there is one steel mill reached this scale after merging with other mills. In chapter 1, to describe the background motivation, purpose and limitation related to the study. In chapter 2, the study of the related theory and information about the competitive strategy, merger and acquisition, diversification, core competence and strategic alliance. To understand the theory and can be used for the analysis in the next chapter. In chapter3, the introductions to the tendency of development for the global steel industry and the case of merger between the steel mill. To realize the reason, background, strategic thinking and expected benefit from it. Meanwhile, the introduction to the career of the development for the steel industry of the Japan, USA and Taiwan in the past and now. In chapter 4, the introduction to the China Steel Corporation and to understand what cause it to have the most competitive strength in the global steel industry. Also, two cases will be reported which concerned about the cost and experience brought to China Steel Corporation to realize how to learn from it next time for the merge and acquisition activity. In chapter 5, the conclusion has been made by the study. The diversification is the necessary step taken by the steel mills in order to grow up, but the key point is on the evaluation and estimation. The profitability and future expansion will be the top priority. Who can close to the end-user will be the winner for the competition. The major consideration to the merger and acquisition held by the steel mills lie on the complementary of the product, the market sharing and distribution and cost down. The Mainland China, due to its mass population will be a big consumer for the steel. So, China Steel should pay attention to evaluate and deep into the market of the South of the China where 500 million people will become a huge market in future. Is bigger the better? Somebody doubt it, the synergy and profit will be the focus on consideration to a merger activity.

Along with the popularity of the financial industry¡¦s becoming more and more free, large and international, the merging of banking industries becomes the inevitable trend. This research applied the resource-based theory to conduct a case study of merging of public banks by means of the qualitative research so as to understand the financial revolution policy of the financial governmental department and the comprehensive development of the banks studied. This research also focused on the study if the surviving bank made great use of ¡§resources¡¨ to connect with performances & generate the merging synergy. In this research, the main motivation of merging of banks lies in the managing efficacy of economies of scale and economies of scope and the external growth of incorporation can be reached by that. The key factors of successful merging for Bank of Taiwan and Central Trust of China lied in the low homogeneity, fair complementary financial business as well as the excellent base of management. ¡§Resources¡¨ are the key point of incorporation competitive advantage. By the mutual cooperation of capacity renewal and extension, incorporation can make growth and profit as well as reduce the managing risk. Accordingly, the construction and accumulation of resources is the primary consideration of the strategic decision-makers. This research not only justified the effectiveness of the rise in the corporation competitive advantages by ¡§resources¡¨ but also richened the versatility of the resource-based theory. The conclusion of this research was as follows. 1. The merging of Bank of Taiwan and Central Trust of China could enhance the competitive advantages of Bank of Taiwan, develop the managing synergy and achieve the external growth. 2. The merging of Bank of Taiwan and Central Trust of China had the positive assistance in enhancing the economies of scale and extending the economies of scope for Bank of Taiwan. 3. The merging of Bank of Taiwan and Central Trust of China made the application of Bank of Taiwan¡¦s incorporation resources and the connection with performances more efficiently as well as reduced the management cost.

Global telecommunications liberalization and a series of policies continually promoted by the government have contributed to comprehensive liberalization of the domestic telecommunication market. In addition to complying with the national telecommunication policies, the major duties of Chunghwa Telecom are to create corporate value and maintain sustainable operation following privatization, as it confronts rapid advancement in telecommunication technologies, a liberalized market, a changing operational environment, and intensive competition from aggressive competitors. Hence, Chunghwa Telecom needs to address the important challenges in creating a new competitive edge, developing new operational concepts, designing and implementing corporate strategies, utilizing resources, and enabling sustainable development. This study offers an analysis and discussion on Chunghwa Telecom¡¦s corporate competitive strategies following its privatization, as well as on its strategies and financial evaluation in the case of merging Senao, a distributor. SWOT and BCG Matrix are used to analyze the strategies adopted by Chunghwa Telecom, types of its business units, its relative market position and competitive situation, in order to explore the strategy implementation options, optimal allocation and utilization of financial resources, and development direction, to help this company fulfill its corporate strategies. Moreover, the results obtained through evaluation and analysis of the merger and acquisition strategies adopted in the merger and acquisition case are used to verify whether the value and implementation of these strategies correspond to the suggestions provided in the analysis using BCG Matrix, for reference on future planning of enterprise development strategies. The conclusions made in this study are summarized below: 1. Chunghwa Telecom has a solid corporate foundation, relative advantages, excellent development opportunities, and outstanding business units, which provide an advantageous foundation for continual development. Its strategic business units (SBU) are mostly cash cows that can generate great cash flow. There are two stars: broadband service and circuit lease, and one question mark: IPTV. Regarding corporate strategies, the strategic considerations by Chunghwa Telecom in maintaining the advantages of its cash cows (fixed network and mobile service), increasing their competitiveness, and maintaining their relative market share, are therefore necessary and cannot be ignored. 2. In addition to its leading position in market share, Chunghwa Telecom has quickly entered the distribution market by its successful vertical integration with a communication product distributor on the basis of a long-term strategic alliance. The efficient merger and acquisition strategies and optimal utilization of resources create a win-win situation. 3. Under the guidelines for SBU distribution, the benefit gained from the case of merging Senao is higher than that of other investment cases, as the basis of the cooperative strategic alliance and implementation of the strategies regarding utilization of financial resources and operational personnel contributed to fulfilled corporate strategies and a new corporate value. This case can therefore serve as reference for future investment.

Taiwan is an economical body whose major profit is from exporting products. In recent years, electronics industry is becoming the most important role in the exporting trade and makes low profit by manufacturing products for international company and brand. According to the theory of smile curve that invented by Mr. Stan Shih, a founder member of Acer, manufacturing always locates in the bottom of the curve and makes lowest profit. Moreover, in the both high ends are brand (R&D) and marketing (sale/ after service). If the companies would like to climb from bottom to high ends, taking merger and acquisition strategies is the fastest method. Acer and Asustek try to build up their own brands, and Hon Hai, a leading foundry company in Taiwan, wants to enlarge scale, reduce cost, they all use merger and acquisition strategies to achieve their goal rapidly. Hence, the study is focus on Acer, Asustek, and Hon Hai. Through short-term, middle-term, and long-term changes of stock price, we can understand how M&A patterns, amounts, and ways in M&A strategies influence result of M&A. Adopt multiple regression methodology to analyze these above-mentioned factors, and find the factors that influence the result of M&A from empirical studies. The effect of M&A patterns, amounts, and ways gradually weaken. Due to the theory of behavior finance, we may get an inference that there is overreactions or underreactions (momentum effect) in short-term changes of stock prices. But the momentum effect passes off over time. In addition, with Porter¡¦s five force analysis, advice that the company should analyze the competitive intensity in the industry, and develop its core competence. Then taking adequate M&A strategies, and grasping the timing of market can help firms grow up quickly, and get shareholders¡¦ support wholeheartedly.