Managing competence-based synergy in acquisition processes: empirical evidence from the ICT and global cosmetic industries

ABSTRACT

This paper aims to test the ARCTIC framework to assess the prerequisites of competence-based synergy in the acquisition process. To reach this aim, the following research question has been considered: How should core competences be evaluated as sources of synergy in an acquisition? In answering the question, the author researched the latest theoretical findings on the antecedents of synergy in the merger and acquisition process. Based on an in-depth literature review, an ARCTIC framework was developed and tested. The author selected three case studies to test the methodology empirically, namely, the recent Microsoft acquisition of LinkedIn completed at the end of 2016, L’Oréal’s Body Shop acquisition in 2006 and divestiture in 2017, and the recent acquisition of The Body Shop by Natura Cosméticos. The research identified three steps for exploring whether core competence transfer in an acquisition process is an important source of synergy.

KEYWORDS:

• Acquisitions
• core competence
• ARCTIC framework
• synergy

Disclosure statement

No potential conflict of interest was reported by the author.