This chapter introduces the role of synergy management in mergers and acquisitions (M&As). M&As have increasing attention in the external growth strategies of firms. Synergy plays a key role in M&As, first, in the decision making process and, then, in the performance evaluation. Prior studies have paradoxically regarded synergy. The “synergy hypothesis” stream considers synergy as the main motive of M&As. In contrast, the “synergy inflation” stream argues that synergy is the main failure’s reason of M&A. Overall, prior research shows that synergy is an important motivation of M&As, has tended to be overestimated and has been difficult to achieve. Accordingly, we argue that synergy is not a “myth” and could improve the value of combined firms if managers and executive had able to develop an effective management avoiding hidden pitfalls.
CITATION STYLE
Garzella, S., & Fiorentino, R. (2017). M&A success and failure: The role of synergy management. In Contributions to Management Science (pp. 9–34). Springer. https://doi.org/10.1007/978-3-319-40671-8_2
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