Areas of complexity in a reverse merger: An exploratory study regarding the complexity of theintegration process in a reverse merger
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Mergers and acquisitions are common business practices and a large amount of studies point to the complexity of these endeavors and the difficulty of executing them successfully. Different kinds of mergers and acquisitions exist and one of the most uncommon forms is referred to as the reverse merger.
The reverse merger is unusual in the sense that the acquiring company conforms to the ways and culture of the target company. Being such a rare event, little previous research regarding the reverse merger, and specifically the integration process of such an acquisition, exist. As a result, further enquiry was deemed necessary, which is why the purpose of this study is to explore said integration and identify areas of complexity in this process.
In order to identify areas of complexity, the authors conducted a case study at a company who recently had partaken in an acquisition intended to be a reverse merger. The majority of the data was collected through in depth interviews on site as well as participatory observations.
The findings in this study indicate three different areas of complexity: lack of cultural awareness, lack of planning as well as lack of communication. These three areas are intertwined and it is suggested that they are accounted for when pursuing a reverse merger. In addition, the findings of this study can be used as a foundation for future research.
Place, publisher, year, edition, pages
2014. , 78 p.
M&A, integration, culture, reverse merger, complex, cultural awareness, planning
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-160943OAI: oai:DiVA.org:kth-160943DiVA: diva2:792749