Integrating Sustainability Aspects into the M&A Process

Table of Contents

1 Introduction

2 Theoretical Background

2.1 Sustainability Controlling

2.1.1 Sustainability Terms

2.1.2 Definition and Objective

2.1.3 Organisation

2.1.4 Tasks and Processes

2.1.5 Instruments

2.2 Mergers & Acquisitions

2.2.1 Definition, Types and Objectives

2.2.2 M&A Process

2.2.3 Post-merger Integration of Controlling

3 Literature Review

3.1 Research on Sustainability and Economic Performance

3.2 Research on Sustainability in M&A

3.3 Research Gap and Research Questions

4 Empirical Analysis

4.1 Research Design

4.1.1 Basics of Qualitative Research

4.1.2 Data Collection

4.1.3 Data Analysis

4.2 Empirical Results

4.2.1 Integration of Sustainability Information into M&A pre-merger

4.2.1.1 Preparatory Phase

4.2.1.2 Transaction Phase

4.2.2 Integration of Sustainability Controlling post-merger

4.2.2.1 Objectives and Context

4.2.2.2 Organisation

4.2.2.3 Tasks and Processes

4.2.2.4 Instruments

4.2.2.5 Integration Barriers and Success Factors

4.2.2.6 Levels of Integration

4.3 Discussion and Implications

5 Conclusion

Objectives & Research Topics

This thesis examines the integration of non-financial sustainability information into the Mergers & Acquisitions (M&A) process and the subsequent implementation of sustainability controlling in the acquired entity. The primary research goal is to understand how acquirers leverage sustainability data to enhance transaction success and how they design post-merger sustainability management to ensure group-wide consistency.

• Integration of sustainability criteria during the M&A pre-merger phase.
• Role of sustainability in risk management and target selection.
• Implementation of post-merger sustainability controlling systems.
• Identification of integration barriers, success factors, and context-dependent challenges.
• Evaluation of qualitative expert insights regarding sustainability governance.

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Summary of Chapters

1 Introduction: Provides an overview of the rising importance of Corporate Social Responsibility (CSR) in business operations and identifies the research gap regarding the integration of sustainability in M&A activities.

2 Theoretical Background: Defines key concepts including sustainability controlling, the M&A process, and the specific context of post-merger controlling integration.

3 Literature Review: Discusses existing research on the link between CSR, financial performance, and M&A success, leading to the formulation of two research questions.

4 Empirical Analysis: Outlines the qualitative research design, data collection via expert interviews, and presents the findings regarding pre-merger sustainability information usage and post-merger controlling integration.

5 Conclusion: Synthesizes the main findings, highlights practical implications for integrating sustainability into M&A, and acknowledges research limitations.

Key Words

Sustainability Controlling, Mergers & Acquisitions, M&A, Corporate Social Responsibility, CSR, Due Diligence, Post-merger Integration, Sustainability Management, Triple Bottom Line, Qualitative Research, Expert Interviews, Synergy Realisation, Risk Management, Sustainability Performance, Stakeholder Management

Frequently Asked Questions

What is the core focus of this research?

The thesis focuses on how acquiring companies integrate non-financial sustainability information into the M&A process and how they manage sustainability controlling in the acquired company post-merger.

What are the primary thematic areas?

The research explores two main areas: the use of sustainability data during the preparatory and transaction phases of M&A, and the design and implementation of sustainability controlling integration after the transaction.

What is the primary research objective?

The objective is to investigate how non-financial information contributes to transaction success and how sustainability management is rolled out to acquired entities to maintain group-wide standards.

Which research methodology is applied?

The study utilizes a qualitative research design based on semi-structured expert interviews with professionals in group finance, M&A, and controlling.

What is covered in the main section of the work?

The main section evaluates empirical results from expert interviews, focusing on pre-merger strategy, the due diligence process, post-merger organizational integration, and the specific instruments and tasks used for sustainability controlling.

What are the characterizing keywords of the study?

Key terms include Sustainability Controlling, M&A, CSR, Due Diligence, and Post-merger Integration.

How is the sustainability fit assessed during the M&A process?

Experts describe the sustainability fit as an assessment of the target's corporate philosophy and environmental/social performance to ensure group-wide standards are preserved or brought up to the acquirer's level.

Why is the pre-merger screening for sustainability often limited?

Experts noted that sustainability often has subordinate relevance at the early screening stage due to the prevalence of financial criteria, and that information about small and medium-sized companies is often not publicly available.

What role does the due diligence process play for sustainability?

Due diligence is identified as the central point for active and proactive investigation of environmental and social risks, such as pollution or labor law compliance, which then informs the post-merger integration planning.