The Motives for Mergers and Acquisitions and Their Implications for Research and Practice

Abstract

Mergers and Acquisitions (M&A) have long intrigued scholars given their size, complexity, and frequent failure. Despite an extensive body of research on M&A, a key limitation in M&A research is the lack of focus on the motives underpinning acquisitions, which may explain frequent mixed and inconclusive results. Much of the existing literature struggles to fully capture the complex and multifaceted nature of these motives, limiting the ability to draw consistent conclusions. In this paper, we review academic and practical perspectives on M&A motives, highlighting both discrepancies and methodological challenges. Our key contributions include a comparison of theoretical and practical insights, and a discussion of challenges like construct validity and research bias. We also emphasize the need for future research to explore M&A motives in specific industries and under varying scenarios, such as single versus multiple motives, and to assess how environmental and technological factors impact these motives and their outcomes