A systematic review of the due diligence stage of mergers and acquisitions : towards a conceptual framework
Bhagwan, V. ; Grobbelaar, S. S. ; Bam, W. G. (2018-11-09)
CITATION: Bhagwan, V., Grobbelaar, S. S. & Bam, W. 2018. A systematic review of the due diligence stage of mergers and acquisitions : towards a conceptual framework. South African Journal of Industrial Engineering, 29(3):217-234, doi:10.7166/29-3-2061.
ENGLISH ABSTRACT: Organisations are under constant pressure to grow in the face of increased competition, changing conditions, and increasingly relaxed country and currency regulatory environments. In order to remain a player or an idustry leader, it’s imperative for companies to achieve real growth. Mergers and acquisitions (M&A) are an external mechanism for organisations to achieve growth. There are different stages in the typical M&A transaction. The due diligence stage of a transaction is critical in evaluating whether to proceed with a deal. It provides essential information that is used in setting negotiating parameters, determining bid prices, and providing a basis for integration recommendations. The due diligence process, therefore, should be managed effectively to ensure a higher probability of success for the deal. A systematic literature review was undertaken to establish the key concepts behind due diligence. Due diligence is multidisciplinary in nature, thus a wide range of literature was reviewed to gain a holistic understanding of the process. Concepts identified during the review were then individually examined. Similar concepts were grouped together into a new concept. The outcome of this paper forms the basis of a conceptual framework that captures the key areas of due diligence, the due diligence process and principles.
AFRIKAANSE OPSOMMING: Organisasies is deurlopend onder druk om te groei in die aangesig van verhoogde mededinging, veranderende omstandighede en toenemend verslapte land- en valuta-regulerende omgewings. Om hul status as ŉ rolspeler of industrieleier te handhaaf, is dit van kern belang vir organisasies om ware groei te behaal. Samesmeltings en verwerwings is ŉ eksterne meganisme vir organisasies om groei te behaal. Daar is verskillende stadiums in só ŉ transaksie. Die noulettendheidsondersoek stadium van ŉ transaksie speel ŉ kritiese rol in die voortgaanbesluitneming van ŉ ooreenkoms. Dit verskaf essensiële inligting wat gebruik word om onderhandelingspunte te stel, die vasstel van ŉ aanbod en die daarstelling van integrasie aanbevelings. Hierdie proses moet dus doeltreffend bestuur word om ŉ hoër waarskynlikheid van onderhandelingsukses te verseker. ŉ Stelselmatige literatuurstudie is onderneem om die sleutelkonsepte te formuleer. ŉ Noulettendheidsondersoek is multidissiplinêr van aard en dus beslaan die literatuurstudie ŉ noemenswaardige reikwydte om sodoende ŉ holistiese verstaan van die proses te bekom. Konsepte wat tydens die literatuurstudie identifiseer is, is saam gegroepeer om nuwe konsepte te vorm. Die resultaat is ŉ konseptuele raamwerk wat die sleutel areas van ŉ noulettendheidsondersoek saamvat.
Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/104676
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