The acquisition process as a learning process: Evidence from a study of critical problems and solutions in domestic and cross-border deals

• Published in: Journal of world business : JWB Vol. 36; no. 1; pp. 11 - 31
• Main Authors: Very, Philippe, Schweiger, David M
• Format: Journal Article
• Language: English
• Published: Greenwich Elsevier Inc 01-03-2001; Elsevier; Elsevier Advanced Technology Publications; Elsevier Science Ltd
• Series: Journal of World Business
• Subjects: Acquisitions & mergers; Acquisitions and mergers; Economic concentration; Financial analysis; Financial economics; International; Learning; Mergers; Organizational learning; Samples; Studies; Take-overs; United States; United States > US
• ISSN: 1090-9516; 1878-5573
• DOI: 10.1016/S1090-9516(00)00052-3

While mergers and acquisitions (M&A) are clearly on the rise, most deals do not create value. Researchers have attempted to explain poor performance by a failure to adequately manage the acquisition process. Following this research, this study first attempted to identify key problems faced and solutions employed by acquirers during the stages of the acquisition process for domestic and cross-border deals. Results were then interpreted from a learning perspective, which itself revealed that the acquisition process can be understood both as a learning process applied to the focal deal and as a learning process aimed at improving the acquisition process itself. Moreover, results indicate that both forms of learning are affected by an acquirer’s experience in a particular target country.