Integrate or partner? An M&A analysis from the acquiree’s point of view
Avaloq, headquartered in Switzerland, is a market leader in global digital banking. It was acquired by the leading Japanese IT conglomerate NEC Corporation at the end of 2020, despite COVID-19 pandemic challenges faced during the sale process. The aim of the M&A was to strengthen NEC’s cloud software services in digital finance and government, essential pillars for its smart cities strategy. The case explores the M&A process from the acquiree’s viewpoint. Avaloq’s leadership team were debating which post-merger integration structure to propose to NEC: full merger, partnering or a hybrid approach? To help the protagonist solve this dilemma, the following perspectives and their strategic alignment are analyzed in depth, giving valuable insights into the integration direction: Organizational business models identifying M&A synergies; joint value-creation strategies and integration design ensuring the resulting M&A value is greater than the sum of its parts; industry drivers promoting vertical or horizontal integration; and the role of management/employee preferences in relation to M&A direction within the broader perspective of managing cross-cultural differences.
- Identify M&A synergies and organizational design using the Business Model Canvas.
- Assess industry forces via the double helix framework (vertical vs. horizontal integration).
- Understand how culture, leadership and human factors impact M&A integration design.
- Devise the best strategy to maximize and realize value creation.
2017-2021
Cranfield University
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NUCB Business School
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in Journal of Small Business Management 17 November 2023, ePub before print, https://doi.org/10.1080/00472778.2023.2272262
in International Journal of Entrepreneurial Behaviour and Research 21 November 2023, ePub before print, https://doi.org/10.1108/IJEBR-05-2023-0516
in Stanford Social Innovation Review Winter 2023, vol. 22, no. 1, pp. 52-60, https://doi.org/10.48558/C6F4-S443
in HBR.org 17 November 2023
in Journal of Small Business Management 17 November 2023, ePub before print, https://doi.org/10.1080/00472778.2023.2272262
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Research Information & Knowledge Hub for additional information on IMD publications
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in International Journal of Entrepreneurial Behaviour and Research 21 November 2023, ePub before print, https://doi.org/10.1108/IJEBR-05-2023-0516
Research Information & Knowledge Hub for additional information on IMD publications
in Stanford Social Innovation Review Winter 2023, vol. 22, no. 1, pp. 52-60, https://doi.org/10.48558/C6F4-S443
Research Information & Knowledge Hub for additional information on IMD publications
in HBR.org 17 November 2023
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Research Information & Knowledge Hub for additional information on IMD publications
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