The aim of the research is to develop strategy-oriented M&A approach from recognising opportunities emerging from changes in market and technology & service business environment to ensuring business continuity. Project seeks and develops methods and tools for the process of new business creation through M&A activity. The research presents the role and potential of risk and opportunity management, risk-conscious decision making and portfolio assessment through M&A (mergers and acquisitions).

Results

The project is divided into two work packages, which comprise several phases and outcomes. The main results will provide an integrated model of the entire M&A process from the strategic decision making to the business continuity and evaluation of the acquisition. As the project involve companies from different industries the results will be not be industry specific. The following key outcomes can be defined within the two working packages as follows:

 

Methods

The research will be carried out in an interdisciplinary consortium including expertise in M&A, corporate venturing, risk and innovation management, market and technology foresight as well as strategic decision making.

In the first phase of the research state-of-the-art analyses and interviews will be made. In the model development phase uncertainty assessment, future oriented technology and market analysis methods as well as decision making modelling and investment evaluation approaches are utilized to develop strategy-oriented M&A approach and related tools. During the case studies the developed tools will be tested by companies participating in the research consortium.

Time schedule

The project activity will be carried out in the time frame 1.3.2009 - 31.03.2011.

Exploitation Potential

The developed approaches and tools support managing the strategy-oriented M&A process and simultaneously increase success of new business creation and overall business profitability and continuity. The main target groups are technology and product oriented companies seeking for new growth opportunities from the service business and mature industries searching for new markets with future strategic relevance. The results can be generalized to benefit companies from mature industries looking for opportunities to grow and create new business through M&As. Results can also be applied e.g. in turbulent business environment where traditional structures and player roles are in flux or converging.

In addition to the two workshops organised during the research, the project includes an introductory kick-off meeting and final, concluding seminar for the core research team, the actual case companies and the selected group of peer companies