Success of International M&As:The case of adidas’ acquisition of Reebok

In the last few decades, mergers and acquisitions (M&A) have gained in strategic importanceas a means of external company growth. Global M&A activity increased as aresult of ongoing globalization and the creation of the European Single Market. Giventhe high economical impact of the increasing number and volume of transactions, it isalarming that more than 50 % of all analysed transactions failed or did not lead to theirexpected results (Picot 2000, p. 345). Most empirical studies show that shareholders ofthe acquiring company did not achieve above-average returns and, in some cases, valuewas even destroyed through these mergers (Lubatkin/Srinivasan/Merchant 1997, p. 77).The failure of most acquisitions may be the result of a number of factors. There is evidencethat human (e.g. cultural) factors are seldom recognized as part of the problem, astop managers are mainly concerned with the financial and strategic aspects of a merger...