An analysis of the most powerful mergers around the world

This, too, may be easier said than done. Transfer of Technology Another popular reason for mergers and acquisitions is transfer of technology, especially for highly specialized companies with unique technologies.

Pankaj Ghemawat Fariborz Ghadar It pays to be big in a global economy, right? Some countries have foreign capital investment laws, which prevent foreign companies from investing locally or set a certain investment limit.

Competitors would be interested in a possible merger or acquisition between two companies in the industry, since a collusion could threaten to take away their market share as the combined company would be more powerful, financially and strategically. Model outputs are robust to variations of the parameters.

One should consider integration and target autonomy together as suggested by Haspeslagh and Jemison The post-merger integration cutoff point is lower when resource similarity increases and is higher when resource complementarity increases.