Title: An operations process framework for international M&A value creation

Authors: Jagjit Singh Srai, Andrej Bertoncelj, Don Fleet, Mike Gregory

Addresses: Institute for Manufacturing, University of Cambridge, CB3 0FS, UK. ' Institute for Manufacturing, University of Cambridge, CB3 0FS, UK. ' Institute for Manufacturing, University of Cambridge, CB3 0FS, UK. ' Institute for Manufacturing, University of Cambridge, CB3 0FS, UK

Abstract: A framework for understanding the operational aspects of international Mergers and Acquisitions (M&As) is presented. Based on a literature review of the operational activities that support M&As, the key stages used in the integration of manufacturing and supply networks are captured from an operations perspective. In-depth case studies of international M&As are used to explore these phases and their supporting operational processes. The resulting process map is tested and further developed with a range of operational and non-operational stakeholders, those that play critical gate-keeping roles in M&A progression. Finally, a single integrating framework is proposed, that links the |hard| and |soft| management factors, with the operational factors that influence successful M&A integration, and how these contribute to value creation. The framework suggests that |network access|, i.e. markets, products, technology, know-how and |network efficiency|, i.e. optimisation of manufacturing and supply chain resources, provide the two principal routes to achieving operational synergy.

Keywords: international M&A; mergers and acquisitions; process maps; value creation; manufacturing; supply networks; operations integration; resources optimisation; supply chain resources.

DOI: 10.1504/EJIM.2010.031270

European Journal of International Management, 2010 Vol.4 No.1/2, pp.3 - 29

Published online: 27 Jan 2010 *

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