Mergers and acquisitions in the reflection of soap bubbles

Abstract

© 2016, Strojarski Facultet. All rights reserved. Mergers and Acquisitions (M&A) have a long history but unfortunately a very short lifespan. The high degree of their failure opens up old issues and requires new answers. This paper presents an original view on Mergers and Acquisitions applying the scientific method of analogy with soap bubbles, with a special attention devoted to the ‘hard’ and ‘soft’ indicators of M&A success. The aim of this paper is to highlight the particular significance of hardly measurable, so-called ‘soft’ elements of (un)success in M&A and through the analogy with soap bubbles to clarify the reasons of M&A failures. In order to verify the similarities of soap bubbles with real business situations, authors provided relevant analogies strengthened with an analysis of short case studies. Based on the conclusions, decision-makers in this business environment will be able to implement such business strategies in order to create more effective business alliance which will last longer.