The factors affecting the effective integration of acquired organisations in South Africa

Abstract

ABSTRACT Over the years a number of studies have been conducted on the topic of Acquisitions, which makes it not a new concept. However, little is known specifically about the positive and negative factors that affect the effective integration of an acquired organisation into the parent organisation. As a result, organisations are unaware of the specific elements they should focus on in order to leverage these, to achieve the successful integration of the acquired organisation. This research report aims to identify the factors that affect the effective integration of an acquired organisation in South Africa. A themed content analysis was conducted on questionnaire responses and information (individually captured interview notes) was gathered by the in-depth, semi-structured interview process, involving 12 respondents that were involved in the acquisition of Red Man Technologies by Blue Turtle Technologies. The McKinsey 7S framework was used as a basis and themes and common factors identified across responses from all respondents led to a deep understanding of these issues and resulted in all 7 factors being highlighted as the ones that affect the effective integration of an acquired organisation in South Africa. The research findings indicated that in addition to the McKinsey 7S’s specifically identified through the literature review, there were other factors such as value creation and synergies that the respondents brought up during the interviews, indicating that these also played a role in the effective integration of an acquired organisation in South Africa. The top factor was Style/Culture, meaning that norms and beliefs needed to be shared between both organisations. All 7 factors are discussed in detail in the study. The key message is that acquiring organisations should review and focus on the 7 factors documented within this research study. They need to ensure that these factors are considered when an acquisition is considered, in order to ensure the integration of the acquired organisation is successful.