Combining Integration and Autonomy in Acquisitions
Stefka Nenkova, Student (University), Netherlands, Premium Member
According to the literature on acquisitions, it is of high importance to decide on the proper level of integration between the firms in order to realize value from an acquisition. It is often considered that there is a trade-off between integration and autonomy. However, there could be situations when certain levels of both integration and autonomy are necessary. Thus, the question arises on how to decide on the effective levels of integration and autonomy in such cases. See also: Dialectical Enquiry
One interesting perspective is the moderating effect of inter firm relatedness on that decision. It is argued that synergies in acquisitions arise from the relatedness between the two companies, i.e. the similarity and complementarity between them.
KEY ACQUISITION INTEGRATION TERMS