Mergers, International Affiliations and the Rise and Fall of a National Firm: Kendon Cox & Co., 1908-1988

Abstract

This paper aims to answer one research question: what are the main drivers of mergers and acquisitions (M&A) and disintegration of medium accounting firms during 1960s-1990s? This question is addressed by an investigation into the history of one medium national accounting firm, Kendon Cox and Co. from 1970 to 1988. Two main data sources were utilized in the paper, including: i) oral history transcripts by Baskerville (2002) and ii) New Zealand Society of Accountants' yearbooks published from 1976 to 1994. The findings suggest that international affiliation with its related benefits was the main driver of the various mergers throughout the firm's history. It is found that the KPMG merger in 1985-1986, and subsequently the loss of international affiliation had triggered Kendon Cox & Co. to disintegrate. Besides, it is the lack of financial and cultural integration among local branches and consequently a lack of a national identity that led to the firm's total fragmentation in the late 1980s. The findings of the study contributed to the literature on i) firm lifecycles, ii) firm strategy and iii) the drivers and success factors of M&A.