THE IMPACT OF CENTRALIZATION OF INTEGRATION PROCESS ON THE EFFECTIVENESS OF CORPORATE ACQUISITIONS
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Abstract
Centralization of the integration process involves creating a joint team, including representatives from both companies involved in the acquisition transaction. The purpose of this article is to identify the impact of integration centralization on the evaluation of the effectiveness of corporate acquisitions. Attention is also paid to how centralization affects the course of integration and whether prior relationships between transaction participants influence the decision to centralize the integration process. The paper presents the results of a survey of 56 acquisition transactions completed on the Warsaw Stock Exchange (WSE), and on the non-public market. The research was conducted using a structured interview technique with the CEOs of the acquiring companies. The research showed that centralization of the integration process occurs rarely, but when it does r, it positively influences the achievement of set goals and the evaluation of the effectiveness of the entire acquisition transaction. Cooperation between acquisition participants in the form of strategic alliances, established before the transaction, positively influences the decision to centralize the integration process.
The integration carried out by the joint team was faster, and the depth of pooling of resorcie and processes of the companies involved in the acquisition transaction was greater.
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