#SYNERGY COMPANY INVESTMENT FULL#

In this study, we assume that synergy may emerge, intended or not intended because of an acquisition.

Being an important measure of the expected outcome of acquisitions ( Larsson and Finkelstein, 1999), there seems to be a difference between intentions and realisations ( Zollo and Meier, 2008), which makes acquisition planning important ( Epstein, 2005). In the literature, the realisation of synergy appears complicated and not easily achieved ( Garzella and Fiorentino, 2014 Zaheer et al., 2013 Zollo and Meier, 2008) often due to integration problems ( Teerikangas and Thanos, 2018 Cartwright et al., 2012 Mirc, 2012), differences in organisational culture ( Stahl and Voigt, 2008) or difficulties in presenting positive financial performance ( King et al., 2004). Intended synergy is more commonly described than achieved synergy because synergy is not only difficult to attain ( Zaheer et al., 2013 Goold and Campbell, 1998 Porter, 1987) but also to identify and measure ( Garzella and Fiorentino, 2014 Zaheer et al., 2013 Goold and Campbell, 2000). The broadly used concept ( Campbell and Sommers Luchs, 1998) lacks a common definition besides the general “two plus two equals five” ( Garzella and Fiorentino, 2014 Sirower, 1997 Porter, 1987 Carter, 1977). Synergy is frequently used to legitimise acquisitions ( Mukherjee et al., 2004 Seth et al., 2000 Trautwein, 1990 Porter, 1987) in various types of industries, for example, Mylan’s acquisition of Meda ( Mylan, 2016) in the pharmaceutical industry, Pernod Ricard’s acquisition of Vin and Sprit ( Pernod, 2008) in the food industry, AT&T’s acquisition of Time Warner ( AT&T, 2016) in the communications industry and Volkswagen’s acquisition of Scania ( Volkswagen, 2014) in the manufacturing industry.

#SYNERGY COMPANY INVESTMENT FULL#

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Synergy company investment