Sustainable Business Practices of Mergers and Acquisitions: Analyzing Critical Factors in IT Sector Companies across Asia

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The last decade has witnessed the highest number of Mergers & Acquisitions in the history of the business world across sectors and industries. The abstruse business environment, the ever-fluctuating political circumstances, the interconnected world, and hence cutthroat competition have been pushing the business to join hands remain competitive in the market. Therefore, it has become crucial for businesses to create and apply sustainable business practices. This study will find out the key fostering factors and critical success and failure factors of Mergers & Acquisitions and their correlations and finally validate the identified factors with the neo-classical theory of Mergers & Acquisitions. This study gyrates around the IT Companies of Asia where 64 respondents classified on the kind of experience from Information Technology space viz. Academicians, consultants, Employees and entrepreneurs further spread across the Asian continent are considered for analysis of critical factors related to Mergers & Acquisitions. The primary data will bring out that brand strengthening pushes a company towards Mergers & Acquisitions along with synergistic benefits. Cost competitiveness and economy of scale push companies towards Mergers & Acquisitions with the highest representing factors, and additionally, the critical factors, which are predictors, have a reliance on the variability of determined components. Corporate restructuring, value, and wealth creation are also major fostering factors. A review of the literature will conclude that clarity in intent, adequate training & development, due diligence, advocacy of fits, proper chain of communication, and practical valuations are key success and failure factors of Mergers & Acquisitions. In conclusion, this study highlights sustainable business practices relevant to the critical success and failure factors of mergers and acquisitions for IT sector companies in Asia. Also, the study will provide the framework of the neo-classical theory of Mergers & Acquisitions across the identified critical factors in the review of the literature.