Main Factors of Success in Mergers and Acquisitions’ Performance

This article proposes a synthesis of the main theoretical and empirical studies dedicated to the research question of the relationship between the mergers and acquisitions’ activities and their further performance. The works that are discussed are researches in the sphere of strategic management, corporate finance, organisational studies and human resources, complemented with conclusions from a recent study in the scope of the privatisation. Further, these researches take into consideration a number of leading theories in this field – Agent theory, Resourced-based theory, Diversification theory, Learning theory, etc. On their basis ten main factors that can be considered as essential elements for the success of mergers and acquisitions (M&As) are identified. In this aspect, leadership qualities of the managers, cultural fit, strategic similarities and fast post-merger integration appear to be crucial for the successful performance of these transactions. Therefore, the empirical application of these M&A theories is tested in the local context of the Bulgarian business climate. By the means of factor analysis, three specific factors of successful M&A performance are extracted empirically and are reasoned.