The Role Of Broader Context And Communication In Acquisition Of Philips Semiconductors

Mergers and acquisitions are increasingly seen by firms as a relatively fast and efficient way to expand into new markets, to acquire new competences, to create economies of scale and to globalize. Yet recent empirical research shows that between 50 and 75 percent of M&A fail to meet the anticipated purpose. Part of our failure to fully understand M&A can be attributed to the nonintegrative nature of existing research. Therefore we will use a more comprehensive lens to look at M&As in the thesis. We take external corporate environment (background, technological competition), the characteristics of the company (size and formalization of decision-making process, experience) the characteristics of the M&A itself (premium), and human resource aspects (communication program, frequency of communication, compensation policy) into account. Since the writer has been working at the market communication department of Philips Semiconductors for over a year, an emphasis has been laid on the communication part. We sincerely hope that by building an integrative framework and analyzing Philips Semiconductors'acquisition with it, some useful suggestions could be brought up here.