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Mergers and acquisitions across European borders: National perspectives on preacquisition due diligence and the use of professional advisers

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  • Angwin, Duncan

Abstract

Recent years have seen a huge growth in European cross-border mergers and acquisitions (M&A) and considerable attention has been given to how such deals arise and are completed. However, most theoretical emphasis has been placed upon noncultural factors although it is increasingly recognized in other spheres of management theory that management styles and business performance cannot be separated out from national or regional cultural influence. As a consequence, this exploratory study focuses upon the influence of national differences in business culture upon preacquisition management. In this paper we report the findings of a large-scale exploratory survey into whether such cultural differences are reflected in different perceptions of the value of due diligence and the use of professional advisors in the preacquisition phase. The findings suggest that national cultural differences do play an important role in affecting acquirer's perceptions of target companies and we suggest that this may have important consequences for the negotiation of deals and the subsequent management of the postacquisition phase.

Suggested Citation

  • Angwin, Duncan, 2001. "Mergers and acquisitions across European borders: National perspectives on preacquisition due diligence and the use of professional advisers," Journal of World Business, Elsevier, vol. 36(1), pages 32-57, April.
  • Handle: RePEc:eee:worbus:v:36:y:2001:i:1:p:32-57
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    References listed on IDEAS

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    1. Angwin, Duncan & Savill, Brett, 1997. "Strategic perspectives on European cross-border acquisitions: A view from top European executives," European Management Journal, Elsevier, vol. 15(4), pages 423-435, August.
    2. David K Tse & June Francis & Jan Walls, 1994. "Cultural Differences in Conducting Intra- and Inter-Cultural Negotiations: A Sino-Canadian Comparison," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(3), pages 537-555, September.
    3. M Krishna Erramilli, 1996. "Nationality and Subsidiary Ownership Patterns in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 225-248, June.
    4. Srilata Zaheer & Akbar Zaheer, 1997. "Country Effects on Information Seeking in Global Electronic Networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(1), pages 77-100, March.
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    Citations

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    Cited by:

    1. Gunkel, Marjaana & Schlaegel, Christopher & Rossteutscher, Tobias & Wolff, Birgitta, 2015. "The human aspect of cross-border acquisition outcomes: The role of management practices, employee emotions, and national culture," International Business Review, Elsevier, vol. 24(3), pages 394-408.
    2. DE CLEYN, Sven & BRAET, Johan, "undated". "The due diligence process – Guiding principles for early stage innovative products," Working Papers 2006016, University of Antwerp, Faculty of Applied Economics.
    3. Ahammad, Mohammad Faisal & Tarba, Shlomo Y. & Liu, Yipeng & Glaister, Keith W. & Cooper, Cary L., 2016. "Exploring the factors influencing the negotiation process in cross-border M&A," International Business Review, Elsevier, vol. 25(2), pages 445-457.
    4. Reddy, Kotapati Srinivasa, 2015. "Extant Reviews on Entry-mode/Internationalization, Mergers & Acquisitions, and Diversification: Understanding Theories and Establishing Interdisciplinary Research," MPRA Paper 63744, University Library of Munich, Germany, revised 2015.
    5. Ahammad, Mohammad Faisal & Tarba, Shlomo Yedidia & Liu, Yipeng & Glaister, Keith W., 2016. "Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention," International Business Review, Elsevier, vol. 25(1), pages 66-75.
    6. Barmeyer, Christoph & Mayrhofer, Ulrike, 2008. "The contribution of intercultural management to the success of international mergers and acquisitions: An analysis of the EADS group," International Business Review, Elsevier, vol. 17(1), pages 28-38, February.
    7. Reddy, Kotapati Srinivasa, 2015. "Determinants of Cross-border Mergers and Acquisitions: A Comprehensive Review and Future Direction," MPRA Paper 63969, University Library of Munich, Germany, revised 2015.
    8. Gomes, Emanuel & Cohen, Marcel & Mellahi, Kamel, 2011. "When two African cultures collide: A study of interactions between managers in a strategic alliance between two African organizations," Journal of World Business, Elsevier, vol. 46(1), pages 5-12, January.
    9. Lina M. Cortés & Diego A. Agudelo & Samuel Mongrut, 2012. "Waves and determinants in the activity of Mergers and Acquisitions: The Case of Latin America," DOCUMENTOS DE TRABAJO CIEF 010658, UNIVERSIDAD EAFIT.
    10. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    11. repec:spr:manint:v:55:y:2015:i:5:d:10.1007_s11575-015-0249-4 is not listed on IDEAS
    12. Angwin, Duncan N. & Paroutis, Sotirios & Connell, Richard, 2015. "Why good things Don’t happen: the micro-foundations of routines in the M&A process," Journal of Business Research, Elsevier, vol. 68(6), pages 1367-1381.
    13. Nicolas Coeurdacier & Roberto A. De Santis & Antonin Aviat, 2009. "Cross-border mergers and acquisitions and European integration," Post-Print hal-01022660, HAL.
    14. repec:eee:bushor:v:60:y:2017:i:3:p:415-425 is not listed on IDEAS
    15. Ahammad, Mohammad Faisal & Glaister, Keith W., 2013. "The pre-acquisition evaluation of target firms and cross border acquisition performance," International Business Review, Elsevier, vol. 22(5), pages 894-904.
    16. Li, Jiatao & Li, Peixin & Wang, Baolian, 2016. "Do cross-border acquisitions create value? Evidence from overseas acquisitions by Chinese firms," International Business Review, Elsevier, vol. 25(2), pages 471-483.
    17. repec:eee:iburev:v:26:y:2017:i:3:p:461-475 is not listed on IDEAS
    18. Larsen, Michael Holm, 2006. "Value Creation through ICT Integration in Merger & Acquisition Processes," Working Papers 2005-8, Copenhagen Business School, Department of Informatics.
    19. Reddy, Kotapati Srinivasa, 2015. "The State of Case Study Research in Mergers & Acquisitions: A Review of the Literature in Different Management Streams," MPRA Paper 63939, University Library of Munich, Germany, revised 2015.
    20. Shimizu, Katsuhiko & Hitt, Michael A. & Vaidyanath, Deepa & Pisano, Vincenzo, 2004. "Theoretical foundations of cross-border mergers and acquisitions: A review of current research and recommendations for the future," Journal of International Management, Elsevier, vol. 10(3), pages 307-353.
    21. Timmers, A.D., 2010. "The perceived cultural changes and the changes in identification of the employees during a merger between two airlines," Other publications TiSEM a71f79cd-facf-445a-a0ba-4, Tilburg University, School of Economics and Management.
    22. repec:spr:manint:v:52:y:2012:i:3:d:10.1007_s11575-011-0099-7 is not listed on IDEAS
    23. Reddy, Kotapati Srinivasa, 2015. "Why do Cross-border Merger/Acquisition Deals become Delayed, or Unsuccessful? – A Cross-Case Analysis in the Dynamic Industries," MPRA Paper 63940, University Library of Munich, Germany, revised 2015.

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