Cross-border mergers and acquisitions in the context of economic-behavioral phenomena

Abstract

ABSTRACT. Mergers and acquisitions are a powerful way to modify a company's portfolio and generate both long-term value and resilience. The aim and the reasons behind M&A are among the aspects that contribute to their successful implementation, so ascertaining them is also important for the purposes of maximizing the positive effects of these transactions. The first partial objective of the research presented in the paper is to identify the links between the factors affecting the success of the cross-border merger and acquisition projects and the importance of the aims that the respondents want to achieve by selling the company. The second partial objective is to identify the links between the aforementioned factors and the importance of the reasons for which respondents consider cross-border M&A. The research was conducted on a sample of 244 managers of corporations based in 45 European countries that were the subject of a cross-border merger or acquisition in the 2016-2020 period with a market capitalization of more than €100 mil. using the M&APIF methodology. Several statistically significant correlations between the assessed phenomena were recorded. The research results imply that top managers should focus their attention on particular factors more and on others less to successfully implement a project of cross-border M&A. This study may, therefore, serve as a tool for them to do so.