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0:00
Hi. My name is Mehdi Safavi, and I am
an early career fellow in strategy
and international
business at the University
of Edinburgh Business School.
In this talk, I will take
you through a short tour
on the topic of integrated
business ventures, namely Mergers
and Acquisitions, or M&A,
while introducing to you
the process perspective in
mergers and acquisitions research,
which initiated by Haspeslagh,
Jemison and Sitkin in early '90s.
0:27
As you can see in the talk's
agenda, I will spend a few minutes
first to define mergers
and acquisitions briefly,
providing few examples.
Then I take you through various
corporate strategies in line
with conducting mergers
and acquisitions.
Then I'll list the general
advantages and disadvantages
of mergers and acquisitions deals.
Provided a brief
basic understanding,
I then focus on the main
task of this talk, which
is to provide an overview
to the process perspective
in integrative ventures.
Based on these, I then discuss
the potential benefits of mergers
and acquisitions and highlight
the role of integration
in the success or failure of
these integrative ventures.
Based on Haspeslagh
and Jemison's work,
I then provide you with
various integration approaches
and an example from my own
research, hopefully for a better
understanding of the phenomenon.
1:21
Let's define a merger first.
A merger is a transaction
involving two or more corporations
in which stock is
exchanged but in which
only one corporation survives.
1:35
Examples include various industries.
For example, a famous merger
between Daimler and Chrysler,
the world's largest
cross-border deal ever,
which lasted for almost nine years.
Indeed, in 1998, in a so-called
merger of equals, Daimler-Benz
and Chrysler corporation merged
in an exchange of shares in which
Daimler bought 92% of Chrysler.
However, Chrysler suffered a
series of setbacks, plus the fact
that very low level
of synergy effects
were realized between
the two companies.
As a result, in 2007, Daimler-Benz
sold the unit to Cerberus
Capital Management for $6 billion.
Another example in banking
industry, Dai-Ichi Bank in 1971
merged with Nippon Kangyo Bank.
Later on, they combined with Fuji
Bank and Industrial Bank of Japan
to form Mizuho Financial Group.
Another example is the
University of Edinburgh, which
has a great history in mergers.
The university has merged with
various other academic
and research institutions.
For example, it merged
with the New College
during the 1930s or the Royal
Veterinary School in 1951.
Also, it merged with Moray
House's School of Education
in 1998 and with the
Roslin Institute in 2008.
Recently, it merged with
Edinburgh College of Art.
I will use the last
one as an example
later on in this talk to elaborate
on various integration approaches.
