Comparison of merger and acquisition (M&A) success in horizontal, vertical and conglomerate M&As: industry sector vs. services sector

摘要

Due to the high failure rate of the merger and acquisition (M&A) strategy, this study raises the question of whether there is a difference between the types of M&A in relation to M&A success. The study presents a research model to examine how each of the types of M&As - horizontal, vertical and conglomerate - separately affect M&A success. The study compares between the industry sector and the services sector. The results show that horizontal M&As lead to integration success and synergy success in the industry sector, but in the services sector, it leads to a failure of the integration stage, and in the both sectors it hinders the profitability. Vertical M&As lead to a success only in relation to synergy in the services sector, while conglomerate M&As lead to integration success and synergy success in the both sectors, but without success in relation to the profitability in the both sectors.