HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeIntegrate or partner? An M&A analysis from the acquiree’s point of viewback to Strategy

Case Study

Integrate or partner? An M&A analysis from the acquiree’s point of view

By Carlos Cordon, Giorgio Carlo Brambilla and Marta Xiangjin Cao

17 pages

February 2022

Order this case study

Reference: IMD-7-2332

Avaloq, headquartered in Switzerland, is a market leader in global digital banking. It was acquired by the leading Japanese IT conglomerate NEC Corporation at the end of 2020, despite COVID-19 pandemic challenges faced during the sale process. The aim of the M&A was to strengthen NEC’s cloud software services in digital finance and government, essential pillars for its smart cities strategy. The case explores the M&A process from the acquiree’s viewpoint. Avaloq’s leadership team were debating which post-merger integration structure to propose to NEC: full merger, partnering or a hybrid approach? To help the protagonist solve this dilemma, the following perspectives and their strategic alignment are analyzed in depth, giving valuable insights into the integration direction: Organizational business models identifying M&A synergies; joint value-creation strategies and integration design ensuring the resulting M&A value is greater than the sum of its parts; industry drivers promoting vertical or horizontal integration; and the role of management/employee preferences in relation to M&A direction within the broader perspective of managing cross-cultural differences.

Learning Objective

Identify M&A synergies and organizational design using the Business Model Canvas.
Assess industry forces via the double helix framework (vertical vs. horizontal integration).
Understand how culture, leadership and human factors impact M&A integration design.
Devise the best strategy to maximize and realize value creation.

Keywords

Digital Banking, Merger and Acquisition Strategy, Smart City, Global, Local, Information Technology, Financial Technology, Culture, Industry Infrastructure, Industry Innovation

Settings

Avaloq, Finance and Insurance, Financial Services, Finance and Insurance, Banking, Information Technology
2017-2021

Type

Field Research

Available Languages

English

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Best-selling Case Study

Keep reading

Article

Strategic planning in volatility: The dance between agility and core strengths

Understanding your organizational capacity for agility and responding to events accordingly is the key to success in the new business environment, ...

Strategy Agility

By Michael Yaziji

in I by IMD

26 June 2024

Article

The leadership burnout crisis and how to address it

Growing numbers of executives are stuck in survival mode – and risking exhaustion. IMD's Susan Goldsworthy reflects on how CHROs can work with seni...

Human Resources Leadership Workplace Well-being

By Susan Goldsworthy

in I by IMD

25 June 2024

Article

How to navigate our future world order

In a post-pandemic era shaped by wars, climate change, and new technologies, Maha Hosain Aziz outlines the main risks and shock events that could d...

Geopolitics Strategy

By Maha Hosain Aziz

in I by IMD

24 June 2024

Article

Joining the dots: A creative design for leadership

There is much that organizations can learn from artists and designers, from turning ideas into innovation to creative problem-solving and better de...

Organizational Design Innovation Leadership

By Cyril Bouquet and Alexis Georgacopoulos

in I by IMD

21 June 2024

Article

From chaos to calm: Why breath-based mindfulness is essential for leaders today 

With the pressure to innovate only growing, along with the epidemic of digital distractions, our experts offer a mindful leader’s toolkit packed wi...

Leadership Workplace Well-being

By Nia Choi and Christoph Glaser

in I by IMD

19 June 2024

Article

Sustainable design as economic growth [サステナブルデザインとは成長のことなの]

Sustainability Economics Growth

By Patrick Reinmoeller and Seiichiro Yonekura

in Hitotsubashi Business Review

Summer 2024, vol. 72, no. 1

Case Study

Governance at Uber (B): The board reviews the holder report

Case (B) explains the contents of the Holder report, which investigated the diversity, equity and inclusion culture at Uber and ends with Travis Ka...

Board Corporate Governance Diversity and Equity and Inclusion Organizational Culture

By Anand Narasimhan and Shruti Bajpai

Case Study

Governance at Uber (C): The all-hands meeting

Case (C) discusses the meeting that showcased the proposed actions following the Holder report recommendations and highlights the concerning respon...

Board Corporate Governance Diversity and Equity and Inclusion Organizational Culture

By Anand Narasimhan and Shruti Bajpai

Case Study

Governance at WeWork: Adam Neumann’s erratic behavior

This is a fascinating case about Adam Neumann’s problematic behavior, which led to the downfall of WeWork, once one of America’s most valued startu...

Board Organizational Behavior Diversity and Equity and Inclusion Organizational Culture

By Anand Narasimhan and Shruti Bajpai

Case Study

How Boeing lost altitude

The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight....

Board Corporate Governance Leadership Strategy

By Goutam Challagalla, Patrick Reinmoeller and Samaja Penumaka

The leadership burnout crisis and how to address it

By Susan Goldsworthy
in I by IMD 25 June 2024

Summary

Growing numbers of executives are stuck in survival mode – and risking exhaustion. IMD's Susan Goldsworthy reflects on how CHROs can work with seni...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Human Resources

Leadership

Workplace Well-being

Browse all topics

Joining the dots: A creative design for leadership

By Cyril Bouquet and Alexis Georgacopoulos
in I by IMD 21 June 2024

Summary

There is much that organizations can learn from artists and designers, from turning ideas into innovation to creative problem-solving and better de...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Organizational Design

Innovation

Leadership

Browse all topics

From chaos to calm: Why breath-based mindfulness is essential for leaders today 

By Nia Choi and Christoph Glaser
in I by IMD 19 June 2024

Summary

With the pressure to innovate only growing, along with the epidemic of digital distractions, our experts offer a mindful leader’s toolkit packed wi...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Workplace Well-being

Browse all topics

Governance at Uber (B): The board reviews the holder report

By Anand Narasimhan and Shruti Bajpai
Case reference: IMD-7-2586 ©2024

Summary

Case (B) explains the contents of the Holder report, which investigated the diversity, equity and inclusion culture at Uber and ends with Travis Kalanick’s separation from the company.

Reference IMD-7-2586

Organization Uber Technologies

Industry Manufacturing, Technology

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Corporate Governance

Diversity and Equity and Inclusion

Organizational Culture

Browse all topics

Related topics

Board

Corporate Governance

Diversity and Equity and Inclusion

Organizational Culture

Browse all topics

Related topics

Board

Organizational Behavior

Diversity and Equity and Inclusion

Organizational Culture

Browse all topics

How Boeing lost altitude

By Goutam Challagalla Patrick Reinmoeller and Samaja Penumaka
Case reference: IMD-7-2588 ©2024

Summary

The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight. It traces Boeing’s trajectory since the McDonnell Douglas merger in 1997, highlighting the changes in the engineering culture and outsourcing strategy that affected the production quality of the 787 Dreamliner and the 737 MAX aircraft. The case also explores how leadership decisions prioritized cost-cutting over quality, leading to inconsistencies and delays. Then the case discusses the 737 MAX, which was grounded after two major crashes in 2018 and 2019. Investigations by the Federal Aviation Administration (FAA), the Department of Justice and a Senate Committee found defects in the MCAS flight control system and flaws in the safety certification. The case study explores the leadership actions of CEOs McNerney, Muilenburg and Calhoun, who decisively shaped the nature of the company.

Reference IMD-7-2588

Organization Boeing

Industry Travel and Leisure, Airlines and Aviation

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Corporate Governance

Leadership

Strategy

Browse all topics