An examination of the nature of unsuccessful M&A as illustrated by the attempted BMW AG and Rover Ltd. acquisition

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Conceptual formulation
• Definitions of relevant terms
• The Structure of the Dissertation
• Historical background of M&A activities
• Motives and objectives of mergers and acquisitions
• Due Diligence
• Explanation of the term ‘Due Diligence’
• The content of a ‘Due Diligence’
• Market and Commercial Due Diligence
• Cultural Due Diligence
• Human Resource Due Diligence
• Post-Merger-Integration Management
• Definition of the term ‘Post-Merger-Integration Management’
• Strategy of integration
• Aims/objectives of integration and success factors
• Implementation of Post Merger Integration
• Organizational oriented integration
• Personnel oriented integration
• Cultural oriented integration
• Methodology
• Introduction
• Research Design
• Methods
• Limitations
• Discussion of the findings

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The purpose of this dissertation is to examine the reasons behind unsuccessful M&A and develop a strategy to improve the success rate of such processes. The acquisition attempt by BMW AG of Rover Ltd. will be used as a case study to illustrate the challenges and pitfalls of M&A.

• The importance of conducting a comprehensive Due Diligence, including "soft keys" such as cultural and human resource considerations.
• The significance of effective Post-Merger Integration (PMI) management, including its organizational, personnel, and cultural dimensions.
• The impact of cultural differences on the success of international M&A.
• The challenges of implementing an appropriate integration strategy that balances autonomy and strategic interdependence.
• The importance of recognizing the impact of key personnel, especially in the context of a takeover.

Zusammenfassung der Kapitel (Chapter Summaries)

The dissertation begins by defining key terms related to M&A, including "Merger" and "Acquisition." It then provides a historical overview of merger waves and discusses the motives and objectives behind mergers and acquisitions. Chapter 2 focuses on the significance of Due Diligence, exploring its various components, including financial, legal, environmental, market, cultural, and human resource aspects. The chapter analyzes the importance of considering "soft keys" in Due Diligence and provides insights into how these were addressed, or not addressed, in the BMW-Rover case.

Chapter 3 delves into Post-Merger Integration (PMI) Management, outlining its definition, strategies, objectives, and success factors. The dissertation analyzes the four main integration strategies: stand-alone, holding, symbiosis, and absorption. It then examines the approach BMW took in the Rover acquisition, highlighting the challenges of achieving organizational, personnel, and cultural integration. The chapter concludes with an analysis of how the chosen integration strategy contributed to the ultimate failure of the acquisition.

Chapter 4 delves into the methodology used in the dissertation. The chapter outlines the research design, methods, and limitations. It explains the use of both a case study and exploratory, descriptive, and explanatory research strategies to address the complexities of the subject matter. The chapter also highlights the limitations of secondary data, emphasizing the need for more thorough research and analysis on the BMW-Rover case.

The “Discussion of the findings” chapter offers a comprehensive overview of the research findings, analyzing the strengths and weaknesses of BMW’s approach to Due Diligence and PMI in the Rover acquisition. This chapter is critical of BMW’s oversight in various areas, particularly their failure to conduct a thorough Due Diligence, address cultural differences, and effectively manage personnel integration.

Schlüsselwörter (Keywords)

The key terms and concepts explored in this dissertation include mergers and acquisitions (M&A), Due Diligence, Post-Merger Integration (PMI), cultural differences, integration strategies, organizational integration, personnel integration, cultural integration, synergy, market power, diversification, risk reduction, and the case study of BMW AG and Rover Ltd.