International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Insights Regarding the Degree of Industry and Occupational Relatedness and Merger & Acquisition Outcomes
Terry A. Ruhl, P.E., F. ASCE, DrBA

Mergers and acquisitions (M&A) are complicated transformational events that hold myriad risks for the acquiring firm. Recent research suggests that oft-cited requirements to manage cultural compatibility at an organizational level are further complicated by meeting the dominant needs of individual employees on either side of the M&A dyad. However, as cited in the extant literature and summarized herein, leaders of professional service firms must account for issues that arise from industry and occupational relatedness to accurately assess the strategy of merging two organizations. These relatedness concepts can instill additional risk for ultimate M&A success, leaving limited management options for the post-merger integration leadership teams. Thus, leaders must be mindful of these critical issues prior to the development of any holistic M&A strategy, inclusive of partner selection.

Full Text: PDF