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Success and Failures of Acquisitions: A Case Study for a Chemical Company

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  • Shainaaz MOOSA MUSTAFFA

    (Management College of South Africa (MANCOSA), South Africa)

Abstract

The purpose of this study was to perform a universal inspection of the processes adopted in acquisitions by concentrating on attributes which are speedily implemented in the industry. The approach to this research study was based on literature reviews to gain knowledge on the causes of failure and the factors attributed to the success of acquisitions in the case study concerning a chemical company. This method was applied to identify if the failures and successes researched are shown in the case study. The research study firstly looked at various approaches to acquisitions, namely, the pre-acquisition, post-acquisition and integration phases together with the motives for acquisitions. The study delves further into factors influencing the failures and successes of acquisitions. A notable body of research was consulted to focus on these factors. The research study highlights a framework incorporating the management of post-integration strategy concurrently with the people and the organisational goals. The key findings showed that the company lacked a formal integration plan, cultural integration, ad proper communication plans. This resulted in staff unrest and high attrition of staff from deal announcement date up to post integration, leading to high resistance from staff and poor people integration. The company did however achieve financial success through synergy realisation. This positive outcome could have been achieved quicker with the proper integration plans within the different phases of the acquisition. The knowledge attained from this study will hopefully add to the body of knowledge on acquisitions.

Suggested Citation

  • Shainaaz MOOSA MUSTAFFA, 2017. "Success and Failures of Acquisitions: A Case Study for a Chemical Company," Expert Journal of Finance, Sprint Investify, vol. 5(1), pages 21-30.
    • Handle: RePEc:exp:finnce:v:5:y:2017:i:1:p:21-30
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    References listed on IDEAS

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    1. Puranam, Phanish & Singh, Harbir & Zollo, Maurizio, 2003. "A Bird in the Hand or Two in the Bush?: Integration Trade-offs in Technology-grafting Acquisitions," European Management Journal, Elsevier, vol. 21(2), pages 179-184, April.
    2. Shainaaz MOOSA MUSTAFFA, 2017. "Success and Failures of Acquisitions: A Case Study for a Chemical Company," Expert Journal of Finance, Sprint Investify, vol. 5, pages 21-30.
    3. Angwin, Duncan, 2004. "Speed in M&A Integration:: The First 100 Days," European Management Journal, Elsevier, vol. 22(4), pages 418-430, August.
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    Cited by:

    1. Shainaaz MOOSA MUSTAFFA, 2017. "Success and Failures of Acquisitions: A Case Study for a Chemical Company," Expert Journal of Finance, Sprint Investify, vol. 5, pages 21-30.

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    More about this item

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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