Title: Innovations and Discoveries in the Multidisciplinary Research
Chief Editor: Dr. Padmavathi S. M.
Associate Editor: Dr. Poonam Sachin Kadlag
Co-Editor: Dr. Shailaja A Akkur
ISBN: 978-81-69857-36-9
Chapter: 4
DOI: https://doi.org/10.59646/785/4
Authors: Dr. A. Shameem, and Dr. S. Nachammai
Abstract
Mergers & acquisitions (M&A) represent an organization’s primary vehicles for strategic growth. Companies pursue an M&A strategy for many reasons including: gaining market share; acquiring new capabilities; and building additional competitive advantage. However, despite the increasing attention being paid to M&A transactions, most M&A transactions fail to achieve their anticipated value because they lack strategic alignment; have not been properly following due-diligence; experience integration issues; are impacted by regulatory challenges; or are hindered by governance challenges. One of the most important factors determining the outcome of M&A transactions is corporate governance. Effective governance ensures that organizations have the oversight, accountability, transparency and strategic discipline to make certain that any M&A decisions they make are made for the long-term benefit of the company and its stakeholders. In this article, we will examine the importance of corporate governance in M&A transactions as well as the influence of corporate governance on business decisions, risk management and the sustainable creation of value. Our research draws from leading theory and empirical evidence and examines how corporate governance structures impact the outcomes of M&A transactions throughout the transaction life cycle. Additionally, we will outline how corporate governance represents both a system, as well as a practice, and will highlight the emerging governance-related issues in the context of ESG integration; stakeholder management; and digital transformation. Companies that have implemented the proper governance structure for the implementation of mergers and acquisitions will be able to achieve successful acquisitions, increase shareholder value, and manage risk effectively by developing a sustainable competitive advantage.
Key words: Corporate Governance, Mergers and Acquisitions, Strategic Decision Making, Risk Management, Sustainable Value Creation, ESG Governance, Due Diligence, Board Oversight.