Analysing the Scope of Technical Due Diligence in the Context of Mergers and Acquisitions
Trauner V, Hilbrand P, Franke J (2024)
Publication Language: English
Publication Type: Conference contribution, Conference Contribution
Publication year: 2024
Publisher: Technische Hochschule Nürnberg Georg Simon Ohm
Series: Proceedings der Jahrestagung 2024 der EUKO
City/Town: Nürnberg
Book Volume: No. 1/2024
Pages Range: 71 - 73
Conference Proceedings Title: IKOM WP Vol. 5
Event location: Nürnberg
URI: https://opus4.kobv.de/opus4-ohm/frontdoor/index/index/docId/2370
Open Access Link: https://opus4.kobv.de/opus4-ohm/frontdoor/deliver/index/docId/2370/file/Proceedings_EUKO2024_THN_Nuernberg.pdf
Abstract
Today's business environment is challenged by many factors, such as climate change and the rapid pace of digitalisation. Companies are under pressure to react quickly and adapt to these ever-changing dynamics. At the same time, increased competition from globalised markets requires companies to adopt growth strategies in order to maintain their position or establish themselves as industry leaders. However, relying solely on organic growth is limited and may not provide access to the new technologies and skills needed for sustainable success. In this context, mergers and acquisitions (M&A) have emerged as a key mechanism for achieving real growth and competitive advantage.
Despite the macroeconomic challenges caused by Covid-19 and the Russia-Ukraine war, international economic law firm CMS reports 2023 a record number of advised M&A deals. This means that even in difficult economic times, companies are actively seeking growth opportunities and strategic partnerships to meet the complexities of today's business landscape.
In line with this trend, a recent Deloitte study, published in 2023, examines the motivations behind M&A activity. The study shows that one of the main reasons for M&A activity is the acquisition of new technologies and skills. Recognising the need to adapt to the evolving technological landscape and capitalise on new opportunities, companies are turning to M&A as a means of acquiring the necessary skills and expertise.
Deloitte's research into the reasons for M&A deal cancellations shows that, apart from differing price expectations, due diligence (DD) results are the main cause of deal cancellations. This underlines the critical role of the DD process in M&A. Given that most M&A activities are aimed at acquiring technologies and capabilities, technical DD, which involves an evaluation of the technological aspects of the target firm, becomes a highly relevant discipline of DD. However, despite the practical relevance of technical DD, the academic literature base in this area is highly fragmented. Consequently, this paper reviews and discusses existing definitions and dimensions of technical DD using a systematic literature review methodology.
Authors with CRIS profile
Vera Trauner
Lehrstuhl für Fertigungsautomatisierung und Produktionssystematik (FAPS)
Jörg Franke
Lehrstuhl für Fertigungsautomatisierung und Produktionssystematik (FAPS)
How to cite
APA:
Trauner, V., Hilbrand, P., & Franke, J. (2024). Analysing the Scope of Technical Due Diligence in the Context of Mergers and Acquisitions. In Volker M. Banholzer, Anna Wintermayr, Elisabeth Seiler (Eds.), IKOM WP Vol. 5 (pp. 71 - 73). Nürnberg, DE: Nürnberg: Technische Hochschule Nürnberg Georg Simon Ohm.
MLA:
Trauner, Vera, Pirmin Hilbrand, and Jörg Franke. "Analysing the Scope of Technical Due Diligence in the Context of Mergers and Acquisitions." Proceedings of the 24. interdisziplinäre Tagung des europäischen Forschungsnetzwerks EUKO (Europäische Kulturen in der Wirtschaftskommunikation), Nürnberg Ed. Volker M. Banholzer, Anna Wintermayr, Elisabeth Seiler, Nürnberg: Technische Hochschule Nürnberg Georg Simon Ohm, 2024. 71 - 73.
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