Why M&A's failure is a topic of key strategic relevance - Dissertation Example

Specifically the case of SAIC was unique as compared to the British Aerospace (BAe), BMW and Phoenix Consortium is because the company decided to create business alliance with MG Rover through joint-venture method rather than acquisition method. Since SAIC agreed to enter into joint-venture arrangement with MG Rover, the company (SAIC) was able to free itself from the risk of having to share MG Rover’s debt obligations.  Merger and acquisition has been one of the most talked about topic in the study of business management.

Since history repeats itself, it is necessary on the part of the students to explore historical events that took place in the case of MG Rover[1]. Basically, this study will seek to identify the reasons why the British Aerospace (BAe), BMW, Phoenix Consortium, and SAIC decided to enter into merger and acquisition with MG Rover. By exploring and determining what exactly happened when the British Aerospace (BAe), BMW, Phoenix Consortium, and SAIC when these four (4) major companies entered into merger and acquisition with MG Rover, the readers will gain better understanding on how political and economic factors has triggered the failure of merger and acquisition.

This report aims to identify the internal and external factors that could trigger merger and acquisition failure. Upon going through the case of MG Rovers and its acquirers (i.e. the British Aerospace (BAe), BMW, Phoenix Consortium, and SAIC), this study will discuss why entering into a joint-venture agreement can be considered as a better option as compared to merger and acquisition. Based on the case study report, this study will provide a list of recommendations on how to effectively control internal and external factors that could trigger merger and acquisition failure.