The utilization of mergers and acquisitions has over the years become a central part of expanding and growing an organization. To acquire or merge with another firm is often described as a way to facilitate better and faster organizational development, in ways that organic growth cannot. In conjunction with the increase in popularity of mergers and acquisitions, the academic attention towards this area has also grown subsequently. According to scholars, due diligence can be used as a tool to ensure that the acquiring firm and the target firm are a good match, as well as ensuring that any seller statements are consistent with reality. The academic attention towards due diligence is, however, described as surprisingly limited. Previous researchers are calling for an increased and deeper understanding of due diligence in general. Therefore, the purpose of this study is to further develop theoretical knowledge and expand the understanding of due diligence. More exactly, we have targeted Swedish small and medium-sized firms that have acquired another firm recently by asking the following research questions; What are the drivers and challenges of pre-acquisition due diligence for Swedish SMEs? and; How is the pre-acquisition due diligence process managed by Swedish SMEs? and; How are the results of the pre-acquisition due diligence applied? Semi-structured interviews with CEOs, founders, managers, and heads of M&As from seven Swedish SMEs were conducted, based on both scholarly suggested evaluation procedures and a literature review within the field of due diligence. All interviews were conducted and recorded through an online tool which facilitated the process of transcribing, analyzing, and producing the empirical findings. By using qualitative thematic analysis the respondents’ answers, thoughts, and insights were accordingly categorized into one of four main themes and subsequent sub-themes. The findings showed that due diligence brings overall value and that it is a necessity in the process of acquiring, even though it is a rather expensive and time-consuming process that can interrupt the everyday agenda at the acquiring firm. Furthermore, the findings also showed that the management of the due diligence process and the utilization of the results differed considerably between the investigated firms. Lastly, the findings indicate a need for future technological development in the field of due diligence, to achieve a more cost- and time-effective process.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-197418 |
| Date | January 2022 |
| Creators | Lundström, Jim, Stocksén, Molly |
| Publisher | Umeå universitet, Företagsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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