Abstract

This article discusses the factors present in post-merger integration of Systems and Information Technology (SIT) that lead to positive and negative results in mergers and acquisitions (M & A). The research comprised three of the largest acquiring banks in Brazil. We adopted two methods of research, qualitative, to operationalize the theoretical concepts and quantitative, to test the hypotheses. We interviewed six executives of banks that held relevant experience in M & A processes. Subsequently, we applied questionnaires to IT professionals who were involved in the SIT integration processes. The results showed that the quality and expertise of the integration teams and managing the integration were the most relevant factors in the processes, with positive results for increased efficiency and the increased capacity of SIT. Negative results were due to failures in exploiting learning opportunities, the loss of employees and the inexpressive record of integration procedures.

Highlights

  • Research on mergers and acquisitions (M&A) have been developed through three approaches (HENNINGSSON, 2008), which are: a) as a tool for organizational strategy; b) evaluation and development of organizational union between two companies and c) study of events and activities during the processes of M&A

  • We found that the authors seek to identify these events, whether the expected earnings and economic advantages of the banking concentration were achieved in the period prior to M&A, under the financial perspective

  • We can observe that the width of the arrows and the values associated with each indicates the relevance of the factors in the post-merger integration of Systems and Information Technology (SIT) and the results of this integration

Read more

Summary

Introduction

Research on mergers and acquisitions (M&A) have been developed through three approaches (HENNINGSSON, 2008), which are: a) as a tool for organizational strategy; b) evaluation and development of organizational union between two companies and c) study of events and activities during the processes of M&A. In Brazil, the financial sector was placed third in the ranking of M&A in 2014, with 78 transactions involving brokers, banks and investment funds (PRICEWATERHOUSECOOPERS, 2014). Despite this broad scope, there are few academic studies on the integration of Systems and Information Technology (SIT), which are a significant part of the investment in the case of financial institutions, especially in commercial banks, and organizational results and the management of this process in the context of M&A (HENNINGSSON, 2008). Kitching (1967) found that M&A of the horizontal type, i.e., those between companies in the same economic sector, with approximately the same customers and suppliers, were very common among financial institutions. This type began to prevail in the 80s and 90s (CAPRON, 1999)

Methods
Results
Conclusion
Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.