Examining the Impact of Pre-Post Merger and Acquisition Factors on the Intentions of the Deals: Evidence from the Indian Companies

Abstract

Mergers and acquisitions are widely used in business strategies in today’s corporate world to achieve distinct business intentions. However, making mergers and acquisitions succeed is a challenging job. The purpose of this paper is to acquire a better understanding of the planning process of merger and acquisition deals to make them work. This paper intends to draw attention to the significance of different determinants during different stages of the planning process that can ensure genuine success. Data was collected using a structured questionnaire from the top-level officials of the Indian corporate firms, as well as from the merger and acquisition advisors who assist these people in this process. The Partial Least Squares Structural Equation Modelling (PLS-SEM) technique was used. The results of the paper highlighted that the pre-information, pre-approach, and post-approach all played a significant direct role in achieving the desired merger and acquisition intentions. Pre-information has a substantial direct bearing on pre-value and pre-approach as well. Pre-value has a significant indirect impact on attaining the specified merger and acquisition intentions by taking the pre-approach as a mediator in the model. The paper is unique in the sense that this study is carried out by considering various determinants involved in the different stages of the merger and acquisition planning process altogether. Therefore, the results of this paper are very useful in the present corporate world for managers who are going to undertake merger and acquisition deals.