Abstract

Mergers and acquisitions (hereafter referred to as acquisitions) continue to be an important firm strategy and have received a significant degree of attention in the management field. Firms are motivated to acquire other firms for a variety of reasons; acquisitions can be used to increase market power, overcome barriers to entry, enter new markets quickly, and acquire new knowledge and resources (Vermeulen and Barkema 2001). Acquisitions have been examined in terms of their ability to both create and destroy firm value (Haleblian et al. 2009). At their most basic, acquisitions allow firms to grow larger in size, complementing or duplicating existing resources and capabilities. At the other end of this spectrum, acquisitions allow firms to add knowledge, increase their capabilities, enter into entirely new industries and markets, and serve an entirely new group of customers.