2019-02-13T13:16:42Z

2019-02-13

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Mergers and Acquisitions: The current state of the debate.

Consolidation and merger of corporations

free

School of Economics, Business Administration and Legal Studies, MSc in Management

Many researchers and academics have investigated the phenomenon of mergers and acquisitions. The motives which lie behind the confirmed deals of such transactions vary. This thesis scrutinizes the role of financial and managerial motives under which organizations decide to proceed to mergers and acquisitions and illustrates how theory is applied to the real case study of the merger between Kraft and Heinz . This study is motivated by two research questions: the first one is , whether mergers and acquisitions create value for organizations and if yes, to what extent? The second one pertains to the case study of Kraft Heinz and explores both the motives of the organizations and the causation why the particular organization still struggles for growth .This thesis advances the understanding of its reader with a clear illustration of what mergers and acquisitions are. It addresses a gap in the literature according to the level up to which mergers and acquisition s - the most common cause for massive hires or redundancies accordingly – affect the (un)employment rates of countries , has not been investigated yet. The findings of the research , as well as the case study of merger between Kraft and Heinz indicate that success on mergers and acquisitions is more complex and harder to gain than previously assumed. Finally, the conclusion is that the vast majority of M&A cases will struggle until they manage to achieve the desirable growth – not all of them will achieve it. In this respect, recommendations are offered according to which the buyer organization must carefully examine the target organization as far as the management, financials , operations of the latter are concerned. Recommendations do not guarantee success of such a transaction , but they are presented to assist organizations in establishing favorable opportunities for themselves.

Stergios, Leventis

Fragiskos, Archontakis

ihu