Olivier Meier*
Professor
Paris-Est Créteil University
*Business Science Institute faculty member.
In this interview, Olivier Meier, Professor at Paris Est Créteil University, member of the Business Science Institute faculty and author, with Martine Story, of “External growth: winning integration strategies”, discusses the complexities and challenges associated with mergers and acquisitions.
Olivier Meier points out that, despite decades of research, post-acquisition integration remains a complex and often enigmatic issue. He begins by reminding us that mergers and acquisitions (M&A) are complex strategic maneuvers involving a variety of often divergent factors. They obey different rules and timeframes at different levels of the organization. A recent realization has highlighted the variety of strategic situations, in particular the growing importance of M&A for objectives such as joint innovation, which has led to the development of symbiosis acquisitions.
Olivier Meier also emphasizes the diversity of players involved in M&A. While executives and managers are the obvious figures, we mustn't forget the employees whose attitudes and reactions can influence the process, as well as the whole ecosystem including shareholders, media, customers, partners and institutions.
Another critical point raised by Meier is the “war of egos” and personal rivalries that can hamper M&A. These power struggles and jealousies inject a dose of irrationality into maneuvers that are intended to be rational and strategic.
Olivier Meier points out that the once-dominant rationalist model of M&A, influenced by disciplines such as law, economics and finance, has been called into question. Today, cultural differences are recognized as major obstacles, whether at national, organizational or functional level. Culture shock, as in the emblematic case of the Daimler-Chrysler merger, can compromise projects despite their obvious strategic relevance. He also stresses the importance of considering sub-cultures linked to specific businesses, functions and divisions, which add a layer of cultural complexity to M&A.
Finally, Olivier Meier stresses the fundamental importance of the time variable in M&A. External growth is often favored for its speed and short-term results, but the long-term value-creation process can be far more complex. He highlights the tension between the need to act quickly under pressure from shareholders and the media, and the reality of a cultural and managerial integration that takes time.
In short, the external growth of companies entails a significant risk of loss, and calls for in-depth reflection to make these strategies winning. This can only be achieved through in-depth research.