The link between Soft Methods and Mergers and Acquisitions : An exploratory study of the application of soft methods during Company Z acquisition process

Abstract: Even though mergers and acquisitions (M&A) have experienced an upturn during the last three decades, paradoxically two out of three fail to achieve the established objectives because the human side and the complexities it can bring about are most of the times disregarded. In order to grasp those human complexities and facilitate a successful outcome, soft methods could in theory be used. The purpose of this thesis is to bridge the gap between the use of soft methods and an M&A process by taking a broader look at its “soft” aspect in terms of its social and personal dimensions. A case study in the acquisition process experienced by Company Z, a manufacturer of forestry equipment located in Umea, Sweden was conducted. Interviews and documents were the sources of evidence to fulfil a qualitative analysis of the acquisition process, from the acquired point of view, Company Z, in order to comprehend the human complexities raised by this acquisition and find out whether the mentioned company used any kind of soft methods to handle these difficulties or not. The results of the analysis point out that the social and personal dimensions of an acquisition are affected by the process creating diverging and conflicting interests, perceptions, emotions and reactions within the employees. This can hinder the development of the acquisition process. However, no practical evidence was found on the application of soft methods during Company Z acquisition process. Thus, a theoretical framework was developed in order to depict how soft methods could have been applied in Company Z acquisition process.