The role of management accounting in a merger : a case study

Abstract

Purpose - The purpose of this study is to assess the role of management accounting in identifying, evaluating and delivering the merger strategy. This study further aims to analyze the MACS integration process, and the impact of this process on the merger. Design - The research objectives of this study were achieved by means of six semistructured interviews within the two case companies being investigated, following a comprehensive analysis of current literature on the subject areas. Findings - This study revealed that management accounting plays a pivotal role throughout the entire M&A process, from the strategic planning stage to the integration stage. A number of factors which influence the integration process were also identified, together with the impact that the MACS integration process had on the merger itself. Conclusion - This study concludes that companies attempting a merger should embrace management accounting from the very early stages, in both planning and decision-making, as well as control. Management, together with the use of management accounting, should determine the systems and procedures that are required in order to implement the selected merger strategy, so as to ultimately achieve the projected synergies that motivated the merger. Value - It is expected that this study will be of use to other practitioners when considering the role of management accounting in a merger. This study sheds light on the importance of management accounting in the merger strategy and in integrating the merging companies.