Reap exceptional value from M&A;: manage it as a core competence
<p>Purpose: Mergers and acquisitions (M&As) have become the preferred growth strategy for many executives. However, simply “doing deals” is not enough to create a competitive advantage for their companies. Only focusing on M&A as a financial transaction is too narrow of an appr...
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| Format: | Journal article |
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Emerald Publishing Limited
2018
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| _version_ | 1797102542465794048 |
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| author | Galpin, T |
| author_facet | Galpin, T |
| author_sort | Galpin, T |
| collection | OXFORD |
| description | <p>Purpose: Mergers and acquisitions (M&As) have become the preferred growth strategy for many executives. However, simply “doing deals” is not enough to create a competitive advantage for their companies. Only focusing on M&A as a financial transaction is too narrow of an approach, which is easily duplicated across firms. Using Woodward, Inc. as a case example, this article shows how using an actionable, end-to-end process model, and embedding integrated capabilities within the organization, across the entire process, managers can make M&A a core competence to provide a valuable, rare, and inimitable advantage for their firms.</p><p> Design/methodology/approach: A mixed-methods approach, combining action research with a narrative synthesis of empirical and practice literature was used to develop a comprehensive M&A process model - the Deal Flow Model - consisting of ten stages across three phases. The resource-based view, core competencies, and the VRIO framework provide a theoretical foundation for the model. An application of the Deal Flow Model using Woodward Inc. as a case example is also presented.</p><p> Findings: Only focusing on M&A as a financial transaction is too narrow of an approach, which is easily duplicated across firms. Instead, using an actionable, end-to-end process model, and embedding integrated capabilities within the organization across the entire M&A process provides a valuable, rare, and inimitable advantage for firms.</p><p> Research limitations/implications: Researchers will find the Deal Flow Model useful as a structure to examine the M&A process as a whole or to frame single-stage, single-discipline research in the broader context of the overall M&A process.</p><p> Practical implications: A practice-oriented Deal Flow Model, providing a cross-disciplinary, end-to-end view of the M&A process is presented. The model is designed to be actionable by managers, who can apply the process to build the M&A competence of their organization.</p><p> Originality/value: The Deal Flow Model is unique as it is designed to be actionable by managers, who can apply the process to build the M&A competence of their organization. Likewise, researchers will find the model useful as a structure to examine the M&A process as a whole or to frame single-stage, single-discipline research in the broader context of the overall M&A process.</p> |
| first_indexed | 2024-03-07T06:07:23Z |
| format | Journal article |
| id | oxford-uuid:ee5277b1-9f54-49dd-b306-5ef6d28cc284 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T06:07:23Z |
| publishDate | 2018 |
| publisher | Emerald Publishing Limited |
| record_format | dspace |
| spelling | oxford-uuid:ee5277b1-9f54-49dd-b306-5ef6d28cc2842022-03-27T11:31:42ZReap exceptional value from M&A;: manage it as a core competenceJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:ee5277b1-9f54-49dd-b306-5ef6d28cc284Symplectic Elements at OxfordEmerald Publishing Limited2018Galpin, T<p>Purpose: Mergers and acquisitions (M&As) have become the preferred growth strategy for many executives. However, simply “doing deals” is not enough to create a competitive advantage for their companies. Only focusing on M&A as a financial transaction is too narrow of an approach, which is easily duplicated across firms. Using Woodward, Inc. as a case example, this article shows how using an actionable, end-to-end process model, and embedding integrated capabilities within the organization, across the entire process, managers can make M&A a core competence to provide a valuable, rare, and inimitable advantage for their firms.</p><p> Design/methodology/approach: A mixed-methods approach, combining action research with a narrative synthesis of empirical and practice literature was used to develop a comprehensive M&A process model - the Deal Flow Model - consisting of ten stages across three phases. The resource-based view, core competencies, and the VRIO framework provide a theoretical foundation for the model. An application of the Deal Flow Model using Woodward Inc. as a case example is also presented.</p><p> Findings: Only focusing on M&A as a financial transaction is too narrow of an approach, which is easily duplicated across firms. Instead, using an actionable, end-to-end process model, and embedding integrated capabilities within the organization across the entire M&A process provides a valuable, rare, and inimitable advantage for firms.</p><p> Research limitations/implications: Researchers will find the Deal Flow Model useful as a structure to examine the M&A process as a whole or to frame single-stage, single-discipline research in the broader context of the overall M&A process.</p><p> Practical implications: A practice-oriented Deal Flow Model, providing a cross-disciplinary, end-to-end view of the M&A process is presented. The model is designed to be actionable by managers, who can apply the process to build the M&A competence of their organization.</p><p> Originality/value: The Deal Flow Model is unique as it is designed to be actionable by managers, who can apply the process to build the M&A competence of their organization. Likewise, researchers will find the model useful as a structure to examine the M&A process as a whole or to frame single-stage, single-discipline research in the broader context of the overall M&A process.</p> |
| spellingShingle | Galpin, T Reap exceptional value from M&A;: manage it as a core competence |
| title | Reap exceptional value from M&A;: manage it as a core competence |
| title_full | Reap exceptional value from M&A;: manage it as a core competence |
| title_fullStr | Reap exceptional value from M&A;: manage it as a core competence |
| title_full_unstemmed | Reap exceptional value from M&A;: manage it as a core competence |
| title_short | Reap exceptional value from M&A;: manage it as a core competence |
| title_sort | reap exceptional value from m amp a manage it as a core competence |
| work_keys_str_mv | AT galpint reapexceptionalvaluefrommampamanageitasacorecompetence |