Success Factors of Start-Up Acquisitions: Evidence from Israel
Ofer Zaks , Jan Polowczyk , Piotr Trąpczyński
AbstractObjective: This article aims to explore the factors behind successful M&A of start-up companies. Research Design & Methods: The objectives of this qualitative study are pursued in the context of acquired high-tech start-ups in Israel. The study employed semi-structured interviews. The practical model for analysing the transcribed interview responses was based on Shkedi's (2003) method, drawing also from the grounded theory tradition in the process of coding and interpreting data categories. Findings: The results of this research highlight the communication climate (comprising factors such as openness, trust, supportiveness and interest of top managers in the employee's well-being) as a vital behavioural mechanism influencing post-acquisition performance. Also, we found that effective knowledge transfer to the acquired company is one of the essential determinants of success. Implications & Recommendations: M&A require a clear business plan, that which is based on realistic needs. A major fault in many start-ups is focus on technology rather than on strategy. Many start-ups are established and staffed by engineers and scientists who often believe, erroneously, that a good product will sell. Contribution & Value Added: In extant research, most attention has been paid to the acquiring company perspective on success. In contrast, this study focuses on the seller's perspective and contribution to M&A success, instead of on the buyer's perspective.
|Journal series||Entrepreneurial Business and Economics Review, ISSN 2353-883X, e-ISSN 2353-8821, (B 12 pkt)|
|Publication size in sheets||0.75|
|Keywords in English||start-up acquisitions; trust; commitment; resistance to change; success factors; firm performance; Israel|
|Score||= 12.0, 25-03-2020, ArticleFromJournal|
|Publication indicators||= 1|
|Citation count*||1 (2020-09-19)|
|Tytuł numeru||Exporting, Int'l Cooperation and FDI|
* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.