A SYSTEMATIC REVIEW OF THE DUE DILIGENCE STAGE OF MERGERS AND ACQUISITIONS: TOWARDS A CONCEPTUAL FRAMEWORK

Authors

  • Vivek Bhagwan Stellenbosch University
  • Sara (Saartjie) Grobbelaar Stellenbosch University, Department of Industrial Engineering, South Africa AND DST-NRF Centre of Excellence in Scientometrics and Science, Technology and Innovation Policy (SciSTIP)
  • Wouter Bam Stellenbosch University

DOI:

https://doi.org/10.7166/29-3-2061

Abstract

 

 Organisations are under constant pressure to grow in the face of increased competition, changing conditions, and increasingly relaxed country and currency regulatory environments. In order to remain a player or an idustry leader, it’s imperative for companies to achieve real growth. Mergers and acquisitions (M&A) are an external mechanism for organisations to achieve growth. There are different stages in the typical M&A transaction. The due diligence stage of a transaction is critical in evaluating whether to proceed with a deal. It provides essential information that is used in setting negotiating parameters, determining bid prices, and providing a basis for integration recommendations. The due diligence process, therefore, should be managed effectively to ensure a higher probability of success for the deal. A systematic literature review was undertaken to establish the key concepts behind due diligence. Due diligence is multidisciplinary in nature, thus a wide range of literature was reviewed to gain a holistic understanding of the process. Concepts identified during the review were then individually examined. Similar concepts were grouped together into a new concept. The outcome of this paper forms the basis of a conceptual framework that captures the key areas of due diligence, the due diligence process and principles.

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Author Biographies

Vivek Bhagwan, Stellenbosch University

Vivek Bhagwan is a full-time postgraduate student at the Department of Industrial Engineering at Stellenbosch University. He is completing his M.Eng (Engineering Management). He is part of the Mergers and Acquisitions Research group in the department. His research focus is on due diligence in mergers and acquisitions.

Sara (Saartjie) Grobbelaar, Stellenbosch University, Department of Industrial Engineering, South Africa AND DST-NRF Centre of Excellence in Scientometrics and Science, Technology and Innovation Policy (SciSTIP)

Prof Sara Grobbelaar is employed as an Associate Professor at the Department of Industrial Engineering at Stellenbosch University. Her research areas include innovation systems, innovation ecosystems, innovation platforms, technology management and inclusive development.

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Published

2018-11-09

How to Cite

Bhagwan, V., Grobbelaar, S. (Saartjie), & Bam, W. (2018). A SYSTEMATIC REVIEW OF THE DUE DILIGENCE STAGE OF MERGERS AND ACQUISITIONS: TOWARDS A CONCEPTUAL FRAMEWORK. The South African Journal of Industrial Engineering, 29(3), 217–234. https://doi.org/10.7166/29-3-2061

Issue

Vol. 29 No. 3 (2018)

Section

Special Edition

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