Successful Corporate Takeovers

Mapping soft factors of failure and success in the Soft Due Diligence Check
Publication date: 01 January 2014

Every year many mergers and acquisitions take place. Unfortunately many of them do not work out well. Soft factors of failure could be the cause of this. In this research these factors are studied and used for the development of the Soft Due Diligence Check.

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There is much attention in the area of mergers & acquisitions in the media. An important reason for this is the large number of them on a yearly basis. In 2010 it seemed as if a wave of takeovers was started which continued in the following years. The expectation is that this wave will continue for some time especially in the SME sector.

Many takeovers fail. Van Teeffelen (2012) together with the Dutch Chamber of Commerce have researched the effects of these failed business transfers. Most transfers or take-overs were preceded by vast due diligence research. The hard aspects which can be easily measured were taken into account also, but the outcome could still be disappointing. Soft factors of failure could be the cause, such as differences in culture, resistance among employees, and inefficient internal communication.

Research Centre Entrepreneurship & business Innovation is working on the development of a Soft Due Diligence Check, in order to map soft factors of success & failure concerning takeovers.

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