Factors influencing synergy realisation following a merger and acquisition in South Africa

Abstract

Most research studies on the success of merger and acquisition (M & A) transactions have focused on the financial measures of success. This study aims to determine the key success factors necessary to ensure realisation of revenue-enhancing synergies. While synergy realisation is covered generically in some studies, this study looks specifically at revenue-enhancing synergies. Using the case study method, a group that has made several acquisitions in the South African electrical projects industry was investigated. Several sources of evidence were used in the data collection. It was found that sound implementation plans, immediate addressing of HR issues as well as open communication with all concerned was essential to realising revenue-enhancing synergies. Strong leadership emerged as the crucial factor in ensuring that these success factors were driven to realisation