MERGERS AND ACQUISITIONS AND PROJECT MANAGEMENT: DEFEATING GRAVITY AND THE STRATEGIC DISTANCE

摘要

This article reports on work in progress which examines the dynamics of Mergers and Acquisitions (M&A) from the perspective of project management (PM) and the Product Life Cycle (PLC). Based on work to date, M&A success rates may be improved through the application of proper PM techniques to the extent that managers are cognizant of the specific market situation as captured by the PLC and how it affects corporate dynamics. At early stages of the life-cycle M&A are used to buttress core competencies and in late stages to prop market share, both of which become crucial to the survival of the firm. Furthermore, each M&A can be considered a stand alone project with its own risk, quality and cost profiles depending where the two companies are positioned in their respective markets. The notion of "strategic distance" essentially the spatial variance in the PLC, appears a significant indicator in the likelihood of success of various M&A. The article draws upon an empirical database of M&A activity in the hi-tech sector developed by postgraduate students over several years of studies.