Changing Corporate Identity with Mergers and Acquisitions
Faculty of Business and Public Management
School of Management
As many companies would testify, not all mergers and acquisitions are a success. The reasons for failure are many and varied but often involve a lack of consideration by the companies involved in the process, as to what happens following the completion of the deal. The authors investigate the importance of the role''played by corporate identity in the success of merger and acquisition activity. The basis for their findings are grounded in the assumption that if corporate identity is not carefully managed then the likely success of a merger or an acquisition will be significantly undermined. This study empirically investigates whether a relationship exists between corporate identity and the performance of Australian public listed companies or subsidiaries which had undergone either a merger or an acquisition between 1996 and 2002. Furthermore, investigation was conducted into which particular element of corporate identity (communication and visual identity, behaviour, corporate culture or market conditions), best predicted a company's performance following a merger or an acquisition. Data was collected from 39 organisations that completed a detailed questionnaire which was subsequently analysed using a variety of multivariate techniques.