Managing a demerger process- A case study of a corporate divorce

Abstract

With increased M&A activities, and the fact that most mergers fail to meet their initial targets, it is likely that demergers will become more frequent. Since there is no previous conceptual framework explaining the forces and drivers of a demerger process, management has no theoretic foundation for how to approach this phenomenon. This thesis presents a qualitative case study on a disintegration process, and explores and analyzes what forces influence and shape a disintegration process, and how a company can remain competitive during the process. The findings, acquired through interviews with managers and complemented with academic literature, suggest that the demerger process is primarily influenced by market, industry and regulatory conditions, and internal factors such as the history and level of integration and collaboration enables companies to adapt to the enables a company to respond in a particular way The thesis contributes to the academic literature by providing a scientific analysis of a disintegration process, and lays a foundation for further research within the field.