Abstract:
A method of organisational growth is expansion through business acquisition. This
method of expansion is considered a faster mode as compared to organic growth.
According to research studies that have been completed, a very high percentage of BAs
are unsuccessful. Some research suggests that the rate of failure is between 70% - 90%.
Although the business acquisition success rate is low, organisations continue to utilise
business acquisitions as a growth mode. Factors that affect the success of a business
acquisition process, can be categorised into financial and non-financial dimensions. A
significant amount of research has focused on these financial dimensions, and these are
usually the primary focus area of a due diligence process. Whereas the non-financial
dimensions such as culture, management and human resources could also support the
success of business acquisitions. To date, a holistic model of non-financial factors remains
scarce. The study aims to clarify the non-financial factors that leaders must carefully
consider ensuring the success of this strategic business acquisition endeavour.
A qualitative, exploratory research study has been employed to further understand the
non-financial factors in support of successful business acquisitions. The data collection
was completed through 16 semi-structured, in-depth interviews with experts within the
business acquisition field. The study delved deeper into the non-financial factors that
impact the success of business acquisitions. These were categorised as internal and
external, tangible, and intangible non-financial factors, where Internal and external
referenced the perspectives of the acquiring and the targeted organisation.
The study has identified the key non-financial factors that contribute to the success of
business acquisitions. These factors have been documented in a simple holistic
framework. This study contributed to the literature and to business by presenting a
framework uncovering the non-financial factors in support of successful business
acquisitions
