Making 1+1=1. The Central Role of Identity in Merger Math

Hamid Bouchikhi (1) , John R. Kimberly (2)

1 Accounting / Management Control Department
2 University of Pennsylvania [Philadelphia]

When trying to pull off a successful deal many senior executives focus their attention on economic synergies (1+1>2) and ignore that psychological synergies (1+1=1) are required to reap the financial benefits of mergers and acquisitions. The authors discuss common mistakes firms make in the management of identity issues and offer four approaches that managers can follow to achieve identity integration.

Keywords: Identity; Integration; Mergers and acquisitions

Domains: Humanities and Social Sciences; Economics and Finance

Hamid Bouchikhi, John R. Kimberly. Making 1+1=1. The Central Role of Identity in Merger Math. 2012. ⟨hal-00707595⟩