How do serial acquirer managers legitimize more extensive integrations?

Abstract

This paper investigates which factors that influence the legitimization of more extensive integrations by the managers of serial acquirers. A more extensive integration is characterized by a more comprehensive nature than single postacquisition integrations, mainly in terms of complexity and structural alignment of acquired units. Even though a substantial part of M&A activity originates from serial acquirers, they have been subject to limited research. We conducted a case study to comprehend which factors accelerate and which factors alleviate the urgency to conduct more extensive integration for managers of serial acquirers. We identified growing pains from acquisitive growth and a vertical acquisition as the most crucial accelerators, whereas a top-performer strategy and meticulous postacquisition integration represented the most alleviating factors. We contribute to existing literature on serial acquirers by providing insight to contingencies that arise prior to more extensive integrations.