Suppliers in mergers and acquisitions: a study of relationship changes and synergy realisation
2003 (English)Licentiate thesis, monograph (Other academic)
Mergers and Acquisitions seem to be a relatively frequent phenomenon in business life. Even though the number of mergers and acquisitions may seem low, these companies have important relationships with their customers and suppliers, meaning that the number of companies potentially affected by a merger or an acquisition will be many. The focus when studying mergers and acquisitions is normally on the merging and acquiring companies. This study focuses on connected companies and particularly on suppliers to merging and acquiring companies. The overall goal with this licentiate thesis is to explore and describe possible relationship changes and synergy realisation on suppliers connected to merging, acquiring companies.
The overall goal with this licentiate thesis is to explore and describe possible relationship changes and synergy realisation on suppliers connected to merging, acquiring and acquired companies.
The study reviews five cases. Three of them describe different types of supplier relationships within the manufacturing industry. One of these three cases gives a more 'dual' perspective on effects on connected companies since it discusses both customers, suppliers and competitors. The two other cases illustrate two other types of industry, a processing one and one with rather unique products, and very long-term supplier relationships.
The supplier's position in the network is important for possible relationship changes as a consequence of the merger or the acquisition. Findings indicate that if there will be changes the type of products or service provided by the supplier is important and also the possibility to exchange the suppliers. Concentrations in industries indicate that companies need to grow in order to meet customer demands on undertaking larger engagements i.e. mergers and acquisitions initiate other mergers and acquisitions.
Realising synergy is important for the merging companies. The study indicates that this possibly will have an effect also on connected companies. This depends on the type of supplier and also on the type of integration e.g. vertical or horisontal. The study further indicates that mergers and acquisitions have effects on supplier organisations. Time is an important factor when realising synergy. For merging and acquiring companies short-term synergy seem more important than long-term synergy. Suppliers, though, may face long-term effects due merging companies' efforts in realising synergy.
Place, publisher, year, edition, pages
Linköping: Linköping University , 2003. , 128 p.
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1012
suppliers, mergers, acquisitions, synergy, relationship changes
IdentifiersURN: urn:nbn:se:liu:diva-34681Local ID: 22509ISBN: 91-7373-646-5OAI: oai:DiVA.org:liu-34681DiVA: diva2:255529