Review article
THEORETICAL OVERVIEW OF MICROECONOMIC ASPECTS OF MERGERS AND ACQUISITIONS
Davor Filipovic
Ilko Vrankic
Damir Mihanovic
Abstract
Mergers and acquisitions represent prominent phenomenon of the developed capitalist world. In
turbulent business environment of 21st century companies are forced to use different growth strategies
in order to successfully position themselves with respect to competition and to preserve and increase
their profit margins. Mergers and acquisitions, as a part of a growth strategy, often fail to create
synergies and value for shareholders. Therefore, variety of organizational variables like employee
resistance, changes in business strategy and organizational structure, as well as changes in
organizational culture are being analyzed and pointed out as crucial variables for M&A success. Since
majority of research in field of M&A is focused on internal organizational variables the main aim of this
paper is to present overview of microeconomic aspects of M&A with special focus on industry structure
and its impact on M&A success. Besides, historical development of mergers and acquisitions is also
presented in this paper.
Keywords
mergers and acquisitions; industry structure; Herfindahl-Hirschman Index; M&A waves
Hrčak ID:
123663
URI
Publication date:
30.6.2015.
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