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Comparison of merger and acquisition (M&A) success in horizontal, vertical and conglomerate M&As: industry sector vs. services sector

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  • Ziva Rozen-Bakher

Abstract

Due to the high failure rate of the merger and acquisition (M&A) strategy, this study raises the question of whether there is a difference between the types of M&A in relation to M&A success. The study presents a research model to examine how each of the types of M&As – horizontal, vertical and conglomerate – separately affect M&A success. The study compares between the industry sector and the services sector. The results show that horizontal M&As lead to integration success and synergy success in the industry sector, but in the services sector, it leads to a failure of the integration stage, and in the both sectors it hinders the profitability. Vertical M&As lead to a success only in relation to synergy in the services sector, while conglomerate M&As lead to integration success and synergy success in the both sectors, but without success in relation to the profitability in the both sectors.

Suggested Citation

  • Ziva Rozen-Bakher, 2018. "Comparison of merger and acquisition (M&A) success in horizontal, vertical and conglomerate M&As: industry sector vs. services sector," The Service Industries Journal, Taylor & Francis Journals, vol. 38(7-8), pages 492-518, June.
  • Handle: RePEc:taf:servic:v:38:y:2018:i:7-8:p:492-518
    DOI: 10.1080/02642069.2017.1405938
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    Cited by:

    1. Ralf Bebenroth & Robert A. Goehlich, 2021. "Necessity to integrate operational business during M&A: the effect of employees’ vision and cultural openness," SN Business & Economics, Springer, vol. 1(8), pages 1-17, August.

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