The Importance of Information Technology and Information System integration in Mergers and Acquisitions

By

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CHAPTER 1: INTRODUCTION1

Background5

Aim of the Research6

Research Objectives6

Research Questions7

Structure of the Research7

CHAPTER 2: LITERATURE REVIEW9

Introduction9

Process of Mergers and Acquisitions9

Benefits of Mergers and Acquisitions11

Integration of MAS in M&S12

Phase 1: Pre-integration15

Phase 2: Integration planning16

Phase 3: Implementation and choice16

Phase 4: Review and evaluation17

Firm-specific and Performance-evaluation factors17

Integration Model18

Total Integration20

Partial Integration21

No Integration22

Role of IT and IS in Mergers and Acquisitions22

IT and IS Integration Process in M&A26

The Significance of Technology Issues in Mergers and Acquisition28

Strategy for Mergers and Acquisitions31

CHAPTER 3: METHODOLOGY34

Research Design34

Justification for Research Design35

Types of Research Methods35

Qualitative Research Approach36

Quantitative Research Approach37

Mixed Method Approach38

Data Collection39

Data Analysis40

Research Instruments40

Survey Questionnaire41

Interviews41

Research Ethics42

Limitation of the Study43

CHAPTER 4: DISCUSSION AND ANALYSIS44

Questionnaire analysis44

T-tests54

Interview Analysis56

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS60

Conclusion60

Recommendations61

REFERENCES63

APPENDIX67

CHAPTER 1: INTRODUCTION

When one or more companies make agreement to combine in a single company, then the term is known as mergers and it can be achieved through partial or full absorption of target organizations. There are few scholars who have made difference between Mergers and Acquisitions by the equality level between merging partners which means that whether it involves non-equal parties (acquisition) or equal parties (merger) related to their power and size (Epstein, 2004, pp. 174-189). The term somewhat confusing as the term acquisition is mostly used as an exchange act in which organization also known as bidder company use stocks and money, or both in order to acquire few assets of the company which are targeted. Even though the term acquisition can also comprise of full acquisition of another company, more small assets are exchanged as well. The agreements of mergers takes place between parties which compete and operate in the similar business sector or industry and known as horizontal mergers, and with parties which offers access to different value chain level and known as vertical mergers (Buono, 1997, pp. 194-204).

There are many vertical and horizontal combinations that are possible and they are referred as conglomerate mergers. It has been stated in a number of past studies that IT integration is one of the most important factors of successful mergers and after contract information of a merger, departments of IT are expected for consolidated their systems rapidly while disruption in business is kept minimum. However, the task is complex itself as one ...