The Importance of Customers in Mergers and Acquisitions

The aim of the thesis is to identify categories and patterns of how customers impact and are impacted by an M&A. In M&A (merger and acquisition) research the focus is traditionally on the M&A parties alone, and while customers are important elements of the motives behind M&As, they are rarely seen as actors affecting and being affected by an M&A.This thesis researches M&As from M&A parties’ and customers’ perspectives. It categorises and connects M&A parties’ activities related to expectations and activities of customers, with customers’ activities at the acquisition point and at integration…

Contents

PART I
1. INTRODUCTION
A NEW PERSPECTIVE ON M&AS
CUSTOMERS – A FREQUENT FEATURE IN M&A MOTIVES
M&AS AND CONTROL
CAN YOU ACQUIRE CONTROL OVER CUSTOMERS?
A LACK OF PREVIOUS RESEARCH
A VIEWPOINT TO RESEARCH CUSTOMERS IN M&AS
THE SETTING
M&AS DIVIDED INTO EVENTS
PERSPECTIVES ON M&AS
AIM OF THE STUDY
OUTLINE OF THE THESIS
M&AS, M&A PARTIES… – ON DEFINITIONS AND
THEIR USE IN THIS THESIS
MERGERS AND ACQUISITIONS
MERGING, ACQUIRING, ACQUIRED OR M&A PARTIES
CUSTOMER, CUSTOMERS AND CUSTOMER RELATIONSHIPS
2. RESEARCH ON M&AS – AN OUTLOOK
RESEARCH ON M&AS
PRE-M&A AND MOTIVES
INTEGRATION
POST-M&A
PROCESS
OTHER THEMES
CUSTOMERS AND M&AS IN LITERATURE
STRATEGY – CUSTOMERS IN M&AS
MARKETING – M&AS IN MARKETING RESEARCH
NETWORKS – M&AS IN NETWORK STUDIES
SUMMARISING THE LITERATURE REVIEWS
POINTING AT GAPS
3. THE NETWORK APPROACH
SOME BASIC ASSUMPTIONS…
… AND SOME EXPLANATIONS OF THESE
RELATIONSHIPS, INTERACTION AND NETWORKS
DYNAMICS
THE NETWORK APPROACH AS WAY OF LOOKING AT
M&AS AND CUSTOMERS
LEVELS OF RELATIONSHIP ANALYSES
LEVELS OF CHANGE
PERSPECTIVES ON COMPANIES, RELATIONSHIPS AND NETWORKS
CUSTOMERS AND M&A PARTIES – THE SETTING
DESCRIBED AS RELATIONSHIP LAYERS AND LEVELS OF CHANGE
RELATIONSHIPS AS FOCUS
IN A NETWORK CONTEXT
CHANGE AS CAUSE, CHANGE AS OUTCOME
PERSPECTIVES
EVENTS AND PERSPECTIVES
4. METHODOLOGY
RESEARCHING CUSTOMERS AND M&AS – INITIAL CHOICES MADE
CHOICE OF SUBJECT
AN INDUCTIVE APPROACH
THE ROLE AS RESEARCHER
LITERATURE REVIEWS
THE 2004 REVIEW ON M&A LITERATURE
THE RE-REVIEW ON CUSTOMERS IN M&A LITERATURE
THE IMP LITERATURE REVIEW
EMPIRICAL DATA – RESEARCH DESIGN
CASE STUDIES
DATA COLLECTION METHODS
NEWSPAPER REVIEWS
INTERVIEWS
DATA ANALYSIS
UNIT OF ANALYSIS
LEVEL OF ANALYSIS
PERSPECTIVE OF ANALYSIS
ANALYSIS PROCEDURE
PRESENTING RESULTS
HOW ABOUT THE RESULTS? EVALUATION OF THE STUDY
5. INTRODUCING THE M&AS
BT INDUSTRIES’ ACQUISITION OF RAYMOND
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
BT INDUSTRIES’ ACQUISITION OF CESAB
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
TOYOTA’S ACQUISITION OF BT INDUSTRIES
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
MOMENTUM’S ACQUISITION OF STRUCTURIT
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
BASWARE’S ACQUISITION OF MOMENTUM DOC
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
ADB GRUPPEN MANDATOR’S ACQUISITION OF VERIMATION
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
NETSYS’ ACQUISITION OF (AND MERGER WITH) VERIMATION
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
NEXUS’ ACQUISITION OF ‘VERIMATION’
ACQUISITION POINT
INTEGRATION
CHANGES IN RELATIONSHIPS
SUMMING UP THE M&AS
6. ACQUISITION POINT – M&A PARTIES’ VIEW
CUSTOMERS AS MOTIVE
CUSTOMERS AS ADDRESSEES
ACQUIRER’S CUSTOMERS
ACQUIRED PARTY’S CUSTOMERS
MARKETS AND POSITION
CUSTOMERS AS INDIVIDUALS AND AS AGGREGATES
DRIVERS FOR CUSTOMER-RELATED MOTIVES
RESPONSIVE ACTIVITIES
SPECULATIONS ABOUT CUSTOMERS’ FUTURE ACTIVITIES
EXPECTATIONS ON CUSTOMERS’ UNCHANGED BUYING BEHAVIOUR
ACQUISITION POINT, M&A PARTIES’ VIEW – SUMMING UP
7. ACQUISITION POINT – CUSTOMERS’ VIEW
CUSTOMER RELATIONSHIPS AND CHANGE
MOTIVES FROM A CUSTOMER PERSPECTIVE
CUSTOMER REACTIONS
AN ASYMMETRY OF CHANGE
CHANGE, NON-CHANGE AND IN-BETWEENS 106
DRIVING FORCES FOR CUSTOMER REACTIONS 107
M&A ACTIVITIES AS DRIVER FOR CUSTOMER REACTIONS 107
ACTOR ASPECTS
TYPES OF REACTIONS
NON-REACTIONS
INCREMENTAL REACTIONS
RADICAL REACTIONS
RELATIONSHIP OUTCOMES
DIRECT ACTIONS AND DELAYED REACTIONS
8. INTEGRATION – M&A PARTIES’ VIEW
INTEGRATION TOWARDS CUSTOMERS
NON-INTEGRATION
TRANSFER OF PRODUCTS AND/OR RELATIONSHIPS
ABSORPTION OR REPLACEMENT
CUSTOMER AND RELATIONSHIP EXPECTATIONS
INTEGRATION BASED ON MOTIVES
INTEGRATION CORRESPONDING TO MOTIVES
INTEGRATION DEVIATING FROM MOTIVES
CUSTOMERS AND INTEGRATION REALISATION
CUSTOMERS LIMITING INTEGRATION INTENTIONS
PRE-INTEGRATION RECONSIDERATIONS
INDEPENDENCE BEING ARGUED THROUGH CUSTOMERS
CUSTOMERS NOT ACTING ACCORDING TO INTEGRATION INTENTIONS
CUSTOMERS ACTIVELY WORKING AGAINST INTEGRATION
9. INTEGRATION – CUSTOMERS’ VIEW
INTEGRATION FROM A CUSTOMER PERSPECTIVE
INTEGRATION AND CHANGE
DRIVING FORCES FOR CUSTOMER ACTIONS
INTEGRATION ACTIVITIES AS DRIVERS FOR CUSTOMER ACTIONS
‘M&A-EXTERNAL’ ACTIVITIES AS DRIVERS FOR CUSTOMER ACTIONS
TYPES OF ACTIONS
NON-ACTIONS
ADDING PRODUCTS
CONNECTING TO THE OTHER PARTY
RE-EVALUATION AND DISSOLUTION
ACTIVELY OBJECTING INTEGRATION
RELATIONSHIP OUTCOMES
10. EMPIRICAL PATTERNS
ON DRIVERS AND ACTIVITIES
ACQUISITION POINT, M&A PARTIES VIEW
RELATING M&A PARTIES’ VIEW
AT THE ACQUISITION POINT TO THEORY
ACQUISITION POINT, CUSTOMERS’ VIEW
RELATING CUSTOMERS’ VIEW
AT THE ACQUISITION POINT TO THEORY
RELATING CUSTOMERS’ VIEW TO M&A PARTIES’ VIEW
AT THE ACQUISITION POINT 166
INTEGRATION, M&A PARTIES VIEW
INTEGRATION – TYPES OF INTEGRATION
AND IDEAS UNDERPINNING INTEGRATION
RELATING M&A PARTIES’ VIEW AT INTEGRATION
TO THE ACQUISITION POINT
RELATING M&A PARTIES’ VIEW ON INTEGRATION TO THEORY
INTEGRATION, CUSTOMERS’ VIEW
RELATING CUSTOMERS’ VIEW AT INTEGRATION
TO THE ACQUISITION POINT
RELATING CUSTOMERS’ VIEW TO M&A PARTIES’ VIEW
AT INTEGRATION
RELATING CUSTOMERS’ VIEW AT INTEGRATION TO THEORY
EMPIRICAL PATTERNS – SUMMING UP
11. CONCLUSIONS AND REFLECTIONS
SOME INITIAL WORDS
ANSWERING RESEARCH QUESTIONS
HOW ARE CUSTOMERS INCLUDED IN M&A MOTIVES
AND WHAT EXPECTATIONS ON CUSTOMERS UNDERPIN THESE MOTIVES?
HOW DO CUSTOMERS REACT AT THE ACQUISITION POINT
AND WHAT DRIVES THESE REACTIONS?
HOW DO EXPECTATIONS ON CUSTOMERS DRIVE INTEGRATION AND IN
WHAT CAPACITY IS INTEGRATION INFLUENCED BY CUSTOMER ACTIONS?
HOW DO CUSTOMERS ACT TO THE INTEGRATION
AND WHAT DRIVES THESE ACTIONS?
CATEGORIES AND PATTERNS OF HOW CUSTOMERS IMPACT AND ARE
IMPACTED BY AN M&A
IMPACTS
HOW IS THE VIEW ON M&AS CHANGED IF CUSTOMERS ARE SEEN
AS ACTORS IMPACTING AND BEING IMPACTED BY M&A ACTIVITIES?
CONTRIBUTIONS TO RESEARCH
TOWARDS TRADITIONAL M&A LITERATURE
TOWARDS THE NETWORK APPROACH
TOWARDS M&AS ACCORDING TO THE NETWORK APPROACH
REFLECTING RESULTS 196
CAUSES, EFFECTS AND THE CONTEXTUAL RESIDE 196
TRANSFERABILITY OF FINDINGS TO OTHER ACTORS,
SITUATIONS AND DIFFERENT MARKET SETTINGS
LEVEL OF OPENNESS
LET’S GET NORMATIVE… – SOME MANAGERIAL IMPLICATIONS
FUTURE RESEARCH
PART II
A. BT INDUSTRIES
BT INDUSTRIES – A COMPANY BACKGROUND
GEOGRAPHICAL EXPANSION
OWNERSHIP CHANGES AND INTRODUCTION ON THE STOCK EXCHANGE
MATERIAL HANDLING EQUIPMENT
– AN INDUSTRY IN TRANSITION
CUSTOMERS – NEW BUYING PATTERNS
CONSOLIDATION IN THE INDUSTRY
AN ERA OF ACQUISITIONS
THE ACQUISITION OF RAYMOND CORPORATION
RAYMOND CORPORATION
PRE-ACQUISITION CO-OPERATION
ACQUISITION PROCESS
ACQUISITION MOTIVES
INTEGRATION
THE ACQUISITION OF CESAB CARELLI ELEVATORI S.P.A.
CESAB CARELLI ELEVATORI S.P.A.
PRE-ACQUISITION CO-OPERATION
ACQUISITION PROCESS
ACQUISITION MOTIVES
INTEGRATION
TOYOTA’S ACQUISITION OF BT
TOYOTA INDUSTRY CORPORATION
PRE-ACQUISITION CO-OPERATION
ACQUISITION PROCESS
ACQUISITION MOTIVES
INTEGRATION
SUMMING UP AND MOVING ON
EPILOGUE
B. BT INDUSTRIES CUSTOMERS
BESLAG & METALL
COMAU INGEST (SAAB AUTOMOBILE)
DFDS TRANSPORT
DHL
FLÄKTWOODS
SAAB
SERVERA
VOLVO GROUP
C. MOMENTUM DOC
PRIOR TO STRUCTURIT
A CUSTOMER INITIATIVE
… AND A TRIGGERED IDEA
STRUCTURIT
MOMENTUM’S ACQUISITION OF STRUCTURIT
MOMENTUM
ACQUISITION MOTIVES
INTEGRATION
ACQUISITION HYPE AND THE ROAD TOWARDS LIQUIDATION
ACQUISITION HYPE
TOWARDS LIQUIDATION
LIQUIDATION
BASWARE’S ACQUISITION OF MOMENTUM DOC
BASWARE
ACQUISITION MOTIVES
ACQUISITION PROCESS
INTEGRATION
BASWARE SINCE THE ACQUISITION
– BROADENED PRODUCT PORTFOLIO AND INCREASED COMPETITION
D. MOMENTUM DOC CUSTOMERS
FAKTURATJÄNST
HSB
KOPPARSTADEN
SAAB
SABO
SCANIA
ÖREBROBOSTÄDER
E. VERIMATION
PRIOR TO VERIMATION
VERIMATION
ADB GRUPPEN MANDATOR’S (SAPIA) ACQUISITION
OF VERIMATION
ADB GRUPPEN MANDATOR (SAPIA)
ACQUISITION MOTIVES
INTEGRATION
VERIMATION DURING ADB GRUPPEN MANDATOR’S OWNERSHIP
INTRODUCTION ON THE STOCKHOLM STOCK EXCHANGE
VERIMATION DURING THE LISTING ON THE STOCK EXCHANGE
NORMAN DATA DEFENCE SYSTEM’S ACQUISITION ATTEMPTS
THE ACQUISITION OF THE MAJORITY OF SHARES IN VERIMATION
NEVER CAME ABOUT
VERIMATION DURING THE ACQUISITION ATTEMPTS
IN SEARCH OF A NEW PARTNER OR OWNER
NETSYS’ ACQUISITION OF AND MERGER WITH VERIMATION
NETSYS
ACQUISITION MOTIVES
INTEGRATION
NETSYS AFTER THE ACQUISITION OF VERIMATION
‘VERIMATION’ DURING THE NETSYS TIME
HEADING FOR BANKRUPTCY
‘VERIMATION’ AT THE TIME OF THE BANKRUPTCY
NEXUS’ ACQUISITION OF ‘VERIMATION’
NEXUS
ACQUISITION MOTIVES
INTEGRATION
NEXUS DURING THE ACQUISITION OF VERIMATION
‘VERIMATION’ AS PART OF NEXUS
‘VERIMATION’ – EPILOGUE 2004
F. VERIMATION CUSTOMERS
ERICSSON
IKEA
INFODATA/SEMAGROUP
REFERENCES
INTERVIEWS
BT INDUSTRIES
MOMENTUM DOC
VERIMATION
OTHER INTERVIEWS
APPENDIXES

Author: Öberg, Christina

Source: Linköping University

Download URL 2: Visit Now

Leave a Comment