Synergy management pitfalls in mergers and acquisitions

Raffaele Fiorentino, Stefano Garzella
  • Management Decision, August 2015, Emerald
  • DOI: 10.1108/md-12-2014-0692

Synergy management

What is it about?

We analyze synergy management pitfalls in mergers and acquisitions (M&As). The framework highlights the main dimensions of synergy management, the most relevant synergy pitfalls and the ways to overcome them. The study changes the focus from a single, generic synergy trap to three more analytical, useful synergy pitfalls: the mirage, the gravity hill and the amnesia.

Why is it important?

The comprehensive framework suggests insights and guidelines to help managers to overcome pitfalls in synergy management. Managers will learn the following lessons: “when” pitfalls should embrace synergy management; “where” pitfalls may occur; “why” pitfalls may occur; “what” consequences can result in a value of “realized synergy” lower than the “expected synergy”; and “how” actions, tools and behaviors can overcome hidden dangers in synergy management. By shedding light on synergy management pitfalls, this article enriches M&A literature and enhance practical solutions to reduce pitfalls in synergy decision making.

Perspectives

Professor RAFFAELE FIORENTINO
UNIVERSITY OF NAPLES PARTHENOPE

This article opens the "black box" of synergy management in mergers and acquisitions.

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http://dx.doi.org/10.1108/md-12-2014-0692

The following have contributed to this page: Professor RAFFAELE FIORENTINO