How Does Experience in M&A Transactions Affect the Process of Integration and the Effectiveness of Acquisitions? Evidence from the Polish Capital Market
Purpose: The purpose of the study was to determine the importance of the CEOs’ personal experience and also the experience of the companies involved in the transactions on how post-merger integration is conducted. Design/Methodology/Approach: The research in the article examined 58 acquisition transactions, which are part of a larger study on acquisition processes carried out on the Polish capital market. The sample was selected purposively, meaning that the cases were chosen based on criteria such as typicality, diversity, accessibility, and uniqueness. Among the 58 transaction in the sample, 18 were conducted on the Warsaw Stock Exchange, while 40 were carried out on the private market. In the surveyed group, 35 transactions occurred in the Industrial Goods and Services sector, 12 in the Agri-Food sector, and 7 in the Technology, Media, Telecommunications (TMT) sector. The remaining 4 transactions were completed in the Medical Services (2), Real Estate (1), Tourism and Hotel industry (1). Findings: The analysis showed a positive relationship between the companies' experience in acquisition processes and the integration process (R=0.40) as well as between the experience of CEOs in conducting acquisitions and the integration process (R=0.46). The primary motivation for the transaction in each of the examined cases was the acquisition of a customer portfolio, a distribution channel, as well as a portfolio of products or services. Practical Implications: Experience in M&A means that companies develop practices that they use in subsequent transactions in the pre-transaction, transaction, and post-transaction phases. Companies with acquisition experience are more likely to implement the integration process based on an integration plan. Originality/Value: Experience is only one of the parameters that may be taken into consideration in the analysis. Therefore, it is crucial to continue research into the factors that influence the integration process and the effectiveness of the transaction