Abstract
This paper aims to explore and to illustrate success factors of reciprocal synergies of digital transformation-based merger and acquisition (M&A) deals in the grocery retail industry. The author carried out a case study on the merger of Ahold Delhaize in 2016. The paper’s contribution is a conceptual model of research that helps in pre-acquisition analysis on competence-based synergies in M&A to value strategic synergies as market value added a using real options application. By combining qualitative and quantitative research methods, the author provides empirical evidence to indicate the validity and value of the proposed research framework for both scholars and practitioners alike.
Highlights
The combination of tacit knowledge, as well as codified knowledge, can generate competence-based synergy through the merger and acquisition
This paper aims to explore the success factors of reciprocal synergies of a digital transformation-based merger and acquisition (M&A) deal in the grocery retail industry
To bridge the divide and to provide an approach to value synergies in M&A as real options, the paper empirically illustrates a successful digital transformation-based M&A deal in grocery retail business, namely, the Ahold-Delhaize merger in 2016 and contributes to theory and practice by empirically illustrating how two theories work in the M&A process
Summary
The combination of tacit knowledge, as well as codified knowledge, can generate competence-based synergy through the merger and acquisition. To bridge the divide and to provide an approach to value synergies in M&A as real options, the paper empirically illustrates a successful digital transformation-based M&A deal in grocery retail business, namely, the Ahold-Delhaize merger in 2016 and contributes to theory and practice by empirically illustrating how two theories work in the M&A process. The author introduces an integrative conceptual model of the research to explain the valuation of M&A synergy through real options application in the context of digital transformation in the retail industry. To test and to illustrate empirically how to value of M&A synergies using real options application in the context of digital transformation, the author selected an inductive (illustrative) case study of one of the most successful recent digital transformation-based mergers in grocery retail industry, namely, the Ahold-Delhaize merger in 2016. At the end of the paper, the author discusses empirical and theoretical findings, limitations, and future work
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