Merger and Acquisition: A Case Study

Merger And Acquisition: A Case Study On The Impact Of Prior Experiences (Including Strategic Alliances Experiences And Acquisition Experiences) On Acquisition Performance

Abstract

The research is successful to access the positive outcome of the merger and acquisition of Microsoft and LinkedIn. The study has efficiently managed to understand the acquisition experiences along with strategic alliances on the acquisition performance of these two companies. The overall structure has been followed by the researcher to manage the findings and analyse the overall context based on the business potentiality of the selected companies. Introducing the background on the chosen subject the researcher has proceeded to overview the business outcome after the commencement of merger and acquisition. Along with following the research methods there are details on the possible outcome and recommended overview to access a better position in the business.

The introductory part is effective to make the researcher focus on the reason for doing this research. Along with objectives and research questions, the researcher has concentrated on the expected outcome at the end of this research. In the literature review part, there are specifications on the concept and impact of the acquisition on a business house. In addition to this, the gaps of literature have suggested the necessity to review more clear concepts on this matter. The guidance of methodology is about the methods that have been adopted to do the research properly. Guidance with philosophy, design, approach and methods are defined with clear justification for using in this content. In data findings and analysis the researcher has done regression analysis that has evaluated comparative measures and the effect of the dependent variable on the independent one.  The conclusion part has explained that the researcher has followed all the research objectives; data analysis has been done accordingly and it met all the objectives. Finally, the smart recommendations have mentioned that the existing issue can be rectifiable with a planned approach and measures.

Acknowledgement

I am grateful to my guide and supervisor for helping me to determine selecting the subject of this topic and providing the entire knowledge for conducting this research successfully. I am grateful to my fellow scholars who helped with their valuable suggestions and information regarding this field. I am also extremely thankful to those authors and writers whose writings and previous research on this ground have provided relevant findings based on the subject of the research. Without their uncompromising help and cooperation, I will never be able to commence the entire research successfully.

Chapter 1:  Introduction

1.0 Introduction

Merger and acquisition of two companies can be defined as a process of consolidation and an important aspect of the corporate world. The main purpose of such acquisition is to develop and create more value as a collaborative venture than an individual stand. This research has been done on such a merger and acquisition of aspect in two leading firms of the corporate sector. The selected companies are Microsoft and LinkedIn who have been selected for this job to reveal the acquisition performance in these two companies. The detailed analytical background is enough to meet the actual implication that can effectively find out the performance status of the two business houses.

1.1 Background of the study

Merger and acquisition is a much older concept in the corporate world that can be done to meet several aims and objectives. Comparatively smaller or medium-sized ventures are used to merge and acquisition with large ventures to gain an advantage for political, economic and social fields. The large ventures access such takeovers to improve company performance, diversify the product growth in the market or implement technological and strategic changes (linkedin.com, 2018). In the country of UK, the researcher can find out different examples of acquisitions in recent times. For example, GE Oil and gas has acquired Baker Hughes Inc in the year 2016. Similarly, the percentage of acquisitions and mergers is increasing to combat the competitive global business environment.

Figure 1.1: Monthly merger and acquisition in the UK (Source: imaa-institute.org, 2018)

1.2. Background of the company

The leading developer of computer software systems and applications Microsoft has its own has its platform to produce hybrid computers, offering email services, electronic games and other portable media players. The venture has started with its early age operating system and slowly incorporate it into the most compatible operating system that is presently used by 90% of the world’s all personal computer systems (microsoft.com, 2017). On the other hand, LinkedIn is a business and employment-oriented service that mainly operates through mobile apps and websites. This is a social network designed for business and career professionals to connect. There are different work processes such as works of freelancing, customer base and other job prospects for job seekers and career developers (linkedinbackground.com, 2018).  The two firms are both leading houses in their industrial segment though the acquisition has done by Microsoft to influence the characteristics of the business process of LinkedIn.

1.3. Rationale

Merger and acquisition have been taking place every month in the country of the UK due to increasing the target and diversification of the product and services. Microsoft has successfully taken over LinkedIn though it has been a question that how far the acquisition is successful. For example, there are various effects on the corresponding sections that affect the other associate ventures. As reported in the news article that Microsoft acquisition is always contradictory in working places. 3rd party users rely on different clients who were kicked out from the related platforms. On the other hand, the growth of LinkedIn has been referred to as an influence of external factors. Thus, a question can be raised that are there any development done by the acquirer on the taken venture. There is another aspect of using the acquisition experiences and strategic alliances in terms of positive factors. Though, the little development and growth factors have been implying it is not an expected change that should be delivered by the software giant business house (imaa-institute.org, 2018).

In the context of the business purpose, it is always expected that a firm always influences the venture that has been merged with. In this case, though Microsoft has spent 26.2 billion dollars they have not much interested in the growth potentials of this venture (microsoft.com, 2017). As a social website of career development, the brand is already a recognized one and famous among job seekers and developers. A percentage of Facebook users have already migrated to LinkedIn due to its free courses and discounts on the training programme. Additionally, the opportunity of personal branding is another added advantage that can create new business opportunities. The drawbacks and ignorant collaboration has not only affected the business of this venture but also decrease the customer percentage rapidly (Faulkner et al. 2014:98).

In recent days the issue has been affecting the business house from several perspectives. Initially, the venture is experiencing a decreasing customer percentage regarding backdated features, low advancement, and narrow opportunities to access a wide career scope.  The matter is getting worse as the acquisition with Microsoft is keeping the work process slower due to internal misinterpretation. The workers cannot communicate and thus completely get lost from working objectives. Lack of communication among workers affects the business and they cannot fulfil the demand of customers. This issue is keeping the famous social career network several losses in previous years.

Figure 1.2: Low consumer percentage in last years (Source: linkedin.com, 2018) 

 1.4. Research aim

The research aims to develop the impact of prior experiences on the acquisition performance of Microsoft and LinkedIn. The research has developed specific cases that can help to understand the effect of acquisition experiences and strategic alliances on the performance of these two ventures.

1.5. Research objective

• To develop the theoretical underpinnings related to the merging and acquisition procedures of two corporate sector organizations
• To establish the relationship between the strategic alliance and acquisition experiences on acquisition performance
• To evaluate the necessity that makes it urgent to acquire and merge with a bigger venture
• To recommend the ways that can be used to achieve the best effect from merger and acquisition of two different companies

1.6. Research question

1. How the measures can be taken to achieve a successful merger and acquisition of two companies?
2. What is the way to establish the relationship between the two factors and their impact on acquisition performance?
3. Why it is necessary to access an effective acquisition technique of the two selected ventures?
4. Which are the recommended ways that can help to achieve the best result of the merger and acquisition of two different ventures?

1.7. Significance of the body

The introduction part is the face of the research that defines a complete understanding of the research topic. In this section, the researcher has portrayed a detailed outline on which the study has going to develop and meet the research outcome. By providing a formal introductory part the study has moved to define the background of the companies. It helps to understand what the ventures serve and in which industry they belong. The part of rationale has highlighted the issue of the research that is related to the subject or two given variables of the research. Additionally, the rationale is significant that helps to make a complete understanding of the reason for which the research has been conducted. As in this case, the researcher has focused on the unsuccessful effect and outcome of the merger and acquisition of Microsoft and LinkedIn. Research aim, objectives and questions are equally helpful to set the objectives eventually and have proceeded with the research.

1.8. Structure of the dissertation

Figure 1.3: dissertation structure

1.9. Summary

This section of the research is an introductory phase that provides a clear understanding of the two variables of this research. In analysing the effect of merger and acquisition between Microsoft and LinkedIn has suggested developing a complete understanding of the issue of the business. The implications with research rationale have suggested defining the actual position of the two ventures after the merger and acquisition of the two companies. The outcome from this part can be said as an overall guideline to conduct the research successfully and meet the overall outcome of the research. The section is also relevant to define actual characteristics to define the exact implication throughout the research.

Chapter 2: Literature review

Introduction

Mergers and acquisitions are defined as consolidation of companies and it helps to earn a strong position for the ventures in the contemporary competitive market. Acquisition and merger is the way through which, different companies like Microsoft and LinkedIn can combine to increase their fund as well as profit in the merchandise market. It is corporate finance’s one of the major aspects. And it helps to earn a strong position for the ventures in the contemporary competitive market. The main objective of it is the maximization of wealth and analysis of different business opportunities. Through the process of merger and acquisition, there are several changes in its funds, profits and economic status that occur within an organization.

Therefore, the study has been dealt with the impact of prior experience on acquisition performance to understand the financial status of different ventures like LinkedIn and Microsoft under different industries. Different theories like merger and acquisition theory, theory of transaction cost economic and monitor theory have been elaborated along with the gap of literature. The impact of mergers and acquisitions varies from entity to entity. It depends on the group of people who are a part of the merger and acquisition process. Therefore, the study has been dealt with impact of prior experience on acquisition performance to understand the financial status of different ventures like LinkedIn and Microsoft under different industries.

Part 1:literatures about the potential causes/influencing factors of the high or low deal premium/ cumulated abnormal return (CAR)

2.1. Conceptual framework

Figure 2.1: A Conceptual Framework

2.2. Factors of prior experiences on acquisition performance

According to the views of Rothaermel (2015), the factors that affect acquisition performance are as follows:

Preparing for Organisational Change

Change is hard to accept as the employees are accustomed to work in their own offices in case of acquisition and merger their work environment changes this is hard. In the process of acquisition organisational change is must, however not necessarily it has to be a costly and painful affair. The organizational change has to be planned in a proper manner so that all the employees of the organisation can accept the change properly. Just as one shirt size does not fit all similarly organizational change is not welcome by all employees (Lozano et al. 2015:205). The existing employees who have experienced prior merger and acquisition situations they can make the new employees understand the various advantages of the merging and acquisition process.

Communication is Important

All organizational issues start with miscommunication or lack of communication. This lack of communication gets bigger when there is an acquisition as two separate companies are going to act as one. However, Friedman (2016:2342) mentioned that there has to be a timely communication between the management, employees and customers so that it does not hamper the nature of business. If the communication is not proper then there will be a decline in productivity, service and various engagements. This miscommunication gives rise to assumptions, rumours, confused and unhappy employees and confused and unhappy customers (Khalighi & Uysal, 2014:2231). The management has to communicate all the ideas and decisions taken by them clearly to the employees so that there is no scope of confusion. The spokesperson of other already merged and acquired companies can help in formulating a communication strategy for the organisations.

Merging of Two Cultures

When an acquisition takes place, the cultures of both companies merge with each other. If the companies want to achieve success, they have to need a high performing culture. As opined by Howson (2017), when both the cultures will merge then problems will arise, both the companies have to decide how they can overcome the problem. The two different cultures of both companies help to remove all other competitions in the market. The work cultures of both the companies amalgamate to provide a healthy working environment for all the employees and it assists to earn huge success for the ventures like LinkedIn and Microsoft in the merchandise market.

Processes

In an acquisition both the companies have their own working processes. The management of both companies should make a detailed study of the various processes that will be beneficial for them in the future and which processes will be harmful for their business. The harmful processes have to be discontinued as it will not give a positive outcome for both the companies. According to Perkins (2014:146), the employees of both the companies have to be trained in the new processes that are being formulated by the management. The companies which have successfully entered into the merging and acquisition contract can tell their experience about their various processes to the management authorities.

Leaders should lead not Manage

The leaders who are in charge of leading the company they have to take responsibility and be accountable for all the problems that are arising in the organisation due to the result of the acquisition process. The leaders should also motivate all the employees of the organisation to adopt the challenges they are facing in a positive manner and making it into a learning experience out of them (Fairhurst & Connaughton, 2014:7). The leaders should be able to become supporting pillars on which the company will achieve new heights of success in the future. The leaders should also create more leaders under them so that the company can operate smoothly.

Proper Evaluation and Correction

Both the companies should evaluate their various performances like Annual Reports, Financial Analysis, Processes, Product Manufacturing, Customer Satisfaction; Profit and Loss Analysis. Both the organisations should also correct the mistakes which are occurred due to their merging and acquisition process. Companies should constantly improvise and devise various strategies that will help them to reach the pinnacle of success (Tourish, 2014:79). If the organisation does not improvise and innovate then it will become stagnant and other competitors will outrun them. The organisation should formulate some customer satisfaction tools as well so that it can analyze the customer’s behaviour towards them as well.

Strengths and Weaknesses

When entering into the merger and acquisition deal both the organisations have to analyze their various strengths and weaknesses so that they can benefit each other from this venture. Both the companies will have their own set of strengths and weaknesses which they will have to compare and see how they can overcome their weaknesses and can add their strengths to be above competition in the current market situation. Prior cases of successful merger and acquisition deals will show that big companies are better with their finances and small companies are better with their manpower skills.

Part 2: Theoretical and empirical literatures

2.3. Theory on acquisition experiences and strategic alliances

Krashen’s Monitor Theory

In the views of Krashen (1989) many theoretical practices prove the relevance of merger and acquisition theories. This theory shows that how adults and adolescents acquire to speak foreign languages. There are various techniques and hypothesis which is relevant in this situation like the monitor theory, acquisition vs. learning hypothesis, natural order hypothesis and the input hypothesis. Acquiring anything new takes its own time to adjust. Both the companies are going to take time to get adjusted to each other. Both the companies is going to be benefitted by each other in terms of finance sharing, capital sharing, manpower sharing. When these two companies were functioning separately they were not doing so well but when they are going to merge together they are going to gain much more popularity and success.

Transaction Cost Economic Theory

According to the views of Gamache et al. (2015:1263), this theory explains the merger model in detail. This theory states the various economic situations that are required for companies to get into the merger and acquisition process. This theory is relevant as both the companies are going to enter into a merger and acquisition contract together. This theory lays the guidelines that are required in this deal. The companies should follow the guidelines that are stated in this theory to become a successful businesses. This theory will help the companies to know each other in terms of their shareholders, market value and net worth by using various mathematical calculations.

Singling Effect Theory

 In the opinion of Zhang (2015:1039) the singling effect theory is another theory that defines the merger and acquisition based on a strategic alliance. When two companies are thinking on lines of merger and acquisition process then they should formulate proper strategies. These strategies will help the companies to achieve their goals and targets. This theory provides a clear picture of the merger and acquisition process of business. This theory is very relevant regarding the present situation. This theory uses various statistical tools to get the perfect result. This theory removes any asymmetrical problem that arises in the organization. This theory is going to be used extensively while doing this research along with the other theories which define the merger and acquisition model of business.

2.3 Theory on acquisition experiences and strategic alliances

Merger and acquisition theory

As per the viewpoint of Lebedev et al. (2015:25), merger and acquisition refer to the consolidation of two or more companies or assets with the help of various financial transactions. It includes several various transactions like mergers, acquisitions, purchase of assets, tender offers, management acquisitions and many others. In a merger the board of directors of the two companies accepts the combination of the business and seeks shareholders’ approval. The acquired company stops existing after the merger and becomes a part of the acquiring company. In an acquisition, the acquiring company holds the majority shares or stakes of the acquired or target company. On the other hand, Ferreira et al. (2014: 2559) stated that mergers and acquisitions (M&A) are the significant business strategies for the growth and development of companies. Its importance lies in the fact that it increases the valuation of the business and thus it is an important strategy to help to pull out a company from a loss-making zone. The companies look forward to forming a synergy which is the extra value they get after the merger or acquisition over their previous individual values, which includes information based on the prior experience in that genre.

Strategic alliance theory

Strategic alliance refers to inter-firm cooperative arrangements. It is an agreement between two
or more parties to follow a set of objectives required to achieve a common goal. However, the organization remains individual entities. The benefits are derived sometimes in both the long term and short term or only in the long term or short term. The arrangements are in the form of shared equity among the partners or looser contract-based arrangements. Strategic alliances are of
different types like joint ventures, outsourcing agreements, joint marketing, product and technology licensing. It allows the companies to achieve goals at a faster rate. It helps in accessing additional knowledge or valuable resources. Both parties gain an advantage in the long run as the risk is lowered due to sharing of risks and the companies become mutually dependent.

Part 3: learning theory and learning curve

2.4. Advantages and disadvantages of acquisition and merger

Advantages of acquisition and merger

Economies of scale

As stated by Galpin & Herndon (2014: 353), Companies strive to achieve economies of scale which means reduction in the cost of production with no change in the number of revenues and the profits earned. It is derived only when the resources and services of the companies are shared. It leads to cost reduction and thus gives competitive advantage. Economies of scale are achieved due to increased buying power and longer production runs.

Figure 2.1: Economic status (Source: fortune.com, 2016)

The graph shows that Microsoft engaged in the most expensive deals in comparison to other companies i.e. 33% however, it manages to earn 28.8% of return from the merger and acquisition, which is highest in comparison to other mergers and acquisitions.

Tax benefits

Mergers and acquisitions provide with tax benefits. It may happen that the acquiring firm or the target firm enjoy tax shields and this they pass on to their merged or consolidated firm. Thus mergers or acquisitions may also result in higher profits.

Gain power and control over market

Companies enter into mergers or acquisitions to gain power and control over the market. The merger and acquisition result in gaining power and control over the market only if the target company adds value and thus result in synergy. As opined by Brim (2017: 27), the main aim is to increase their relative share in the market and be in a position to increase their prices without losing their customer. Companies want to be the sole market player and to do so, companies merge or acquire those companies who are their next competitors.

Figure 2.2: share price performance of Linked In before and after merger with Microsoft (Source: statista.com, 2016)

Reduction in financial risk

Financial risk refers to the risk that the shareholders face in case if the company’s cash flow is not adequate to meet its financial obligation. And there is fear of losing money if they invest their money in such a company. After mergers and acquisitions due to sharing of resources, a company becomes effective in resolving these issues. Since techniques like quality control tests, keeping good records of all transactions, diversifying income in various profitable venues and many others, are used by the companies hence the financial risk is reduced.

Synergy

From the viewpoint of Qi et al. (2015: 393), it is the magic power that allows companies to enjoy increased value of the combined firm. It makes the new firm efficient by savings in cost and by providing higher returns to their customers. Synergy is derived only when the combined value of the firms is greater than the sum of individual value of the firms. It is meaningless for a company if there is no synergy from the mergers or acquisitions since companies will not get benefits in the long run and it will be loss making route for both the companies.

Disadvantages of mergers and acquisitions

Loss of human resource

Mergers and acquisitions lead to the loss of important employees who act as resources of the company. Loss happens due to the fact that after merger or acquisition most of the employees feel insecure about their current work or due to some changes in the organization they feel left alone. As suggested by Stettner & Lavie (2014: 1381), this requires proper counseling and training and development of the employees. The loss results in loss of business. Losing human resources is a big loss for any company and this forms the biggest disadvantage of mergers and acquisitions.

Competition between the employees

Competition between the employees may arise because there are two sets of employees from two different organizations. After a merger or acquisition, there is a collaboration of employees in the work space. And this competition might turn unhealthy in certain situations like an appraisal of performance and many others.

Training and development of the employees

After merger and acquisition, the companies might go for a restructure in operations of the business. This sometimes requires specific knowledge or skills to conduct the operations. Employees, in this case, need proper training and development and this, in turn, increases the cost pressure on organization. In the view of Kwon et al. (2014: 389), the cost to train the employees is an additional cost also employees’ pressure increases because they have to learn a new set of skills. Employees have to adapt to changing situations.

Productivity loss

Due to training and development programs the company may end up incurring losses due to non performance of the employees. The employees’ non-performance is due to their inclusion in training programs. Loss in productivity is a burden on the capital of the company.

Economies of scale may not be achieved

As opined by Cartwright & Cooper (2014: 197), the companies may not achieve economies of scale due to a lack of control in the organization. There might be a tendency on the employees’ part that they belong to a large organization. Hence the company may fail to motivate the employees to achieve their respective targets and the organizational goal effectively.

The rise in prices of the products offered by the company

Since the competition reduces after mergers and acquisitions the company might come in a position to hike prices of their products and enjoy monopoly power in this regard. The market share of the company increases and the consumers are left with no option. They have to buy product which the company is offering. The consumers are sufferers and the market gets disrupted due to the monopoly power of the company.

Part 4: Research hypothesis

2.5. Hypothesis

The recent studies on this specific topic infer that the business of both Microsoft and LinkedIn has expanded based on their shared resources, shared knowledge of both the companies and their combined strategies. The combined value of the merged firm is greater than the individual values of both companies. The research has looked into the matter and the basis of which is the preceding empirical study. The findings are similar to the proposed findings of this study. As mentioned in Ahammad et al. (2016: 69), there are no significant changes or deviations from the expected value. In order to eliminate the effects of time period difference regression analysis has been used to conduct the research. Regression analysis has tested the value of the strategic alliances of Microsoft and Linked In. Hence the first hypothesis is has been shown below:

H0: strategic alliance has not led to higher premium and business expansion.

H1: strategic alliance has led to higher premium and business expansion.

The time period of the merger and acquisition always plays a vital role in determining its importance as well as the need in the current market scenario. Sometimes the time is not right for a merger to take place as the market is in a position that even a merger or an acquisition will not be able to pull back the companies from failed zones. And this has been shown in the second hypothesis below:

H0: company has not shown growth after merger or acquisition within a time period

H1: company has shown growth after merger or acquisition within a time period.

2.6. Impact of prior experiences on acquisition performance

Results in acquiring a target in post-acquisition performance is often cannot meet the expected outcome. As suggested by Bommaraju et al. (2018:254), disappointment in the post-acquisition phase is a common incident that not only affects the targeted firm but also provides certain barriers to the business of the acquired firm. Less disclosed information is another important barrier that holds back the business outcome effectively.

In the merger and acquisition of two different companies, it has been a challenge for the two forms to continue with their characteristics. In the viewpoint of Ibrahimi (2018:56), the bigger one must influence and lead the smaller firm. Therefore the impact can be both positive and negative from every aspect. On average the post-acquisition stock performance is better when the acquiring firm access an alliance partner. On the other hand, unless the presence of such a partner the taken firm cannot access many benefits in future aspects. It has been suggested by Howson (2017:52), that transformation of relevant information with technology; services are effective to manage the barriers.  A complete understanding between two firms can help to overcome the initial barriers as much as possible.

Finally, the issue of relevance can be referred to manage the overall understanding. As said by Krashen (1989:440), the acquisition must be done within two firms that have some common working points. In addition to this, if one of them has some serious lacking in its work process then the other firm can only access relevant help from other ventures. The overall collaboration and effect on one another can help to meet the exact outcome of the acquisition process. The barriers can be put aside with a comparative analysis between two firms. For example, the two firms can compare the positive factors and access the relevant to progress and develop their initials.

2.7. Gap of literature

As per the viewpoint of Buckley et al. (2014:611), the perception of merger and acquisition assists to increase organisational profit in the contemporary competitive market. It also assists to maintain the workplace culture as well as the production of venture. It has been found that after joining Microsoft, LinkedIn can increase its economic position in the contemporary merchandise market. It aids to develop around 28.8% share, which denotes organisational success in the market (Hajro, 2015:192).

On the other hand, Trichterborn et al. (2016:763) stated that experienced employees are able to take proper strategic decision and it provides positive effect on the financial status of the ventures. If organizations like LinkedIn and Microsoft work together, they can develop effective strategies in order to provide best technology related to information. However, the entire study does not focus on the importance of the strategic alliance in the context of merger and acquisition and it is considered as the gap of literature.

2.8. Conclusion

In order to draw the end line of study, it can be deduced that if organisations can join with other ventures, they can earn lucrative outcomes. Experience of acquisition of employees is considered as too much help as they can aware of the technique based on which, organisational authority tries to develop their position in merchandise market. At the beginning of the study, different factors related to prior experience for acquiring better performance have been introduced. It is clearly mentioned that if the organisational authority is able to hire experienced employees, it can earn huge success in the contemporary market. Various theories like acquisition and merger theory, strategic alliance theory, monitor theory, singling effect theory and theory of transaction cost economy have been elaborated throughout the study for understanding the importance of prior experience in context of strategic acquisition.

However, the study has also focused on the advantages and disadvantages of strategic acquisition. It is observed that if two organisations merge, they can increase their fund, which helps to develop their economic scale. At the same time, organisations are able to get benefits in the procedure of tax payment. Moreover, as LinkedIn has joined with Microsoft, it assists to uplift their position in the market.

Chapter 3: Dissertation methodology

3.1. Introduction

The following methodological content of the dissertation is by the merger and acquisition aspects regarding Microsoft and that of LinkedIn through varied and devised methods. For this methodological analysis, the uses of the learning curve along with event study for the testing of hypothesis are done. Apart from such the action of merger and acquisition over LinkedIn and Microsoft are accounted to undergo an empirical analysis on the basis of the questions devised for the research. Apart from that, a few portions of the methodology are with the description of rhetorical approaches. The merger and acquisition resources are taken to be undergoing through positivism philosophy along with a descriptive design. Apart from such, a deductive approach is taken as a choice for the approach style commencing to the undergoing research.

3.2. Research onion

As evident from the concept of ‘Onion’, the research onion is with the provision of effective progression under whose effect the methodological design for research can be devised out. The onion format made for the research consists of three layers. The first layer contributes to the stances of philosophy. According to Wiek & Lang (2016: 31-41), through such, a proper structure along with guidance’s and that of possible limitations can be chalked out consulting any sort of decision procurement. The second layer of the onion deals with the approaches namely deductive or the inductive. Over this context, the subsequent levels are subjective to influence the made decisions over the present level. The final third layer deals with the strategies available for undertaking the research. The strategies constitute surveys along with case study analysis, action research, ethnography and grounded theory.

Figure 3.1: Research onion (Source: researchgate.net, 2018)

3.3. Research philosophy

Within general context, the philosophy of research caters to three philosophies namely positivism along with realism and interpretivism. Among the procured choices, positivism philosophy is taken for the research, on account of a few constraints. Against the choice of interpretivism and realism, the choice of positivism philosophy caters to structure formats along with approaches being qualitative. Through such, in relevance of the merging and acquisition of mentioned ventures, the standardisation can be achieved through use of positivism philosophy. As mentioned by Kao et al. (2016: 495-505), apart from such, the standardisation step within the philosophy makes it easy for collation along with codifying the data gathered for the research. The use of the positivist approach also makes the method of research easier regarding its reproduction and it makes it simpler to consult other researchers in order of testing the anticipated conclusions.

Figure 3.2: Research philosophy 

3.4. Research approach

Within the general context, the approach to research caters to mainly two of its type namely the deductive and the other being inductive. Among the present choices, the deductive approach is taken for the consulted research, in favour of having sufficient reasons. Against the inductive approach, the deductive approach is chosen for its simplicity along with clarity and certainty, impartiality and that of universality.  As opined by Barquero & Bosch (2015: 249-272), the deductive approach is more concerned for social science projects over which the controlled experiments are not taken to its possibilities. Apart from such, the deductive reasoning is helpful in the examination of validity along with deriving conclusion that is derived within the method of inductiveness.

3.5. Research design

Within general concept, there exists mainly three types of research designs namely the explanatory, exploratory and descriptive. For the research based over merger and acquisition, the chosen design is that descriptive over the rest. The descriptive design, against explanatory and exploratory is effective to undertake analysis for the merger and acquisition of Microsoft and LinkedIn to be a non-quantified topic. In opinion of Kansal & Chandani (2014: 208-217), apart from such, the descriptive design would be effective for the integration of both the methods of quantitative as well as qualitative about that of collection of data. Also against the explanatory and exploratory designs being time consuming stages, the descriptive design is taken into choice by it being less time consuming. Also the design is capable of undertaking phenomenon observations within a natural environment along with unchanged natural ones.

 

Figure 3.3: Research design

3.6. Research method

There are present mainly two types of research methods namely the primary and that secondary research methods. For the research of acquisition, the primary research method is taken into consideration over secondary. As for such, the secondary data would be limited to the articles and that of books and journals regarding the acquisition of the mentioned ventures. In words of Schmidt (2015: 425), in against such, the primary method would be effective to provide realistic data that would procure the factual aspects in a more accurate sense. Also, it would be effective to ensure the reliability of data that is to be/collected is taken from reliable sources.

3.7. Data types

There exist mainly two types of data that are effective for research, namely the primary and that of the secondary data. For the undergoing research, primary data is taken into consideration keeping in concern the size of sample mentioned below. As stated by Saunders et al. (2010: 15), the primary data is effective to provide the content that is having relevance to that of the content through maintaining sufficient higher accuracy degree. Furthermore, primary data is effective to produce a realistic view concerning that of the topic, merger and acquisition of Microsoft and LinkedIn considered in this case. It also effectively provides wider geographical coverage.

3.8. Data collection method

There exist several methods of data collection among which the survey is chosen for the purpose. There exist several advantages of undertaking a survey. The first advantage summons the cost effectiveness as it is devoid of any sort of external costs. Further the data collection is taken to be much easier through surveys. As mentioned by Yin (2013:13), through surveys, a wider sample size can be considered for research in particular. In light of such, the surveys are effective to procure honest responses over other types of methodology in case if there are clearances of confidentiality consulting to that of undergoing research regarding the acquisition.

3.9. Data collection tool

A data collection tool, about research, in particular, tends to various elements namely experiments, surveys, theories, interviews, news articles and case studies. For this research, the element sustaining to data collection tools is taken in form of a survey depending upon the greater sample size. Regarding the merging and acquisition topic corresponding to Microsoft and LinkedIn, survey would be most appropriate. As opined by Lewis (2015: 473-475), through a survey, data can be collected over a wider approach to the respondents targeted for the research. Also, it would entail lesser subjectivity and would be favourable to produce the desired results in a precise form.

3.10. Sampling techniques

The sampling techniques conferring to that of a particular research being undertaken sustains two of its types namely the probable sampling and the other being non-probable sampling. For the research, non-probable sampling is taken into consideration. The reason for such a choice of sampling technique summons to itself being more conducive along with more practical. Also, it procures the responses at a faster rate and being more cost effective, as sample aspects stay in the knowledge of the researcher. In opinion of Choy (2014: 99-104), apart from that, the non-probable sampling is effective to indicate the present traits or even characteristics in particular, regarding the research topic, being merging and acquisition of Microsoft and LinkedIn. It is widely effective in case any particular research is taken through a qualitative approach. It further procures its effectiveness in being effective when there are any time limitation aspects.

Figure 3.4: Sampling techniques

3.11. Population and sample size

As the research is taken over the concern of merging and acquisition in relevance to that of Microsoft and LinkedIn, both being superior brands, hence consideration of a larger sample size that is an amount of 121 respondents are chosen. In favour of such aspects, the 121 respondents are further subdivided into various classes. A few of the respondents are taken in the form of Microsoft managers while few in form of LinkedIn managers. Apart from such, few of the consumers are taken into consideration being collaborative to both the ventures. Within the sample size, the IT department was also taken into the target. In the words of Dang & Pheng (2015: 135-155), this was for to get hold of information that required technological data’s gathering along with its varied aspects. A few of the internal staff were also taken into consideration.

3.12. Data analysis

Consulting to that of research, data analysis is undertaken in the form of regression analysis. The reason favouring the choice of such a data analytical tool summons the concern of a larger population about that of research. By regression analysis, the use of SPSS software is taken into consideration regarding analysis for a larger population, as that of acquisition and merging aspect of Microsoft and LinkedIn. According to Wiek & Lang (2016: 31-41), through the use of statistical data procured from the research, SPSS software would be effective to analyse the data and procure the outcome through manipulating as well as deciphering the data collected from the survey. The dependent variable in the case of the research over acquisition is undergone through measurement of cumulative abnormal return (CAR). It is termed to be common predictor for the performance of acquisition.

There exist also multiple benefits of the regression analysis tool. The first portion is indicative of the significant relationships that that is supposed to be existent within the variable both being dependent and independent. As stated by Hickson (2016: 384), apart from such, the regression analysis is also effective to provide indication regarding the impact strength of variables with multiple dependencies over the present dependent variable. Apart from that the analysis procured would be effective for undertaking comparisons regarding the variable effects.

Figure 3.5: Regression analysis benefits

3.13. Accessibility issue

For the mentioned research, there were a few hindrances regarding the accessibility towards proper data. In favour of such, there existed several aspects conferring to that of financial prospects along with data gathering and budgetary aspects. The accessibility towards financial problems resulted in the misbalancing of budgetary controls that restricted the research to be devoid of proper research instruments. Further, the budgetary aspects provided hindrances regarding management of materials for the research. Apart from such, the accessibility issue pertained to the improper gathering of data’s. Few of the data’s among the overall data that were collected were pertained to be improper that hindered the research outcome. As mentioned by Kao et al. (2016: 495-505), also the demographic were considered to be an accessibility issue that restricted the research to be devoid of aim regarding merger and acquisition in other branches of considered ventures.

3.14. Ethical considerations

The ethical consideration of this research is taken as one of the important research portions that can trigger the failure of the research in its absence. In relevance to that of research, dealing with confidential data’s, any misleading information sorts through a biased format are subjective of being devoid. Also the research is with ethical considerations in alignment with the Data Protection Act 1988. As opined by Barquero & Bosch (2015: 249-272), the communication aspects regarding the research are done through transparency. Apart from that, the declarations consulting any sort of affiliation along with funding sources and that of interests’ conflicts in relevance to research are done with clear intentions. There are avoidance of any sort of exaggeration or any sort of deception regarding the objectives and aims of the research. Confidentiality was also maintained while shuffling the collected data of the research.

Figure 3.6: Ethical consideration 

3.15. Reliability and validity issue

About that of reliability, it states itself to be the similar output against a question by procuring the uses similar research instruments on a multiple basis. The collected documents and the results from that of conducted research over the merging and acquisition aspects of LinkedIn and Microsoft are duly reliable as it contains true facts. In favour of such, the anticipated results would be favoured through outcomes with many similarities if researched by others. Apart from such, the validity aspects are subjective to the selection of proper time scale that is 3 months for the proposed research. In opinion of Kansal & Chandani (2014: 208-217), the research is undertaken from the established brands under the consideration of the Data Protection Act 1988. Also to be concerned, there were no pressurisations over the respondents in order to produce the desired result.

3.16. Research limitations

There exist several factors that accelerate a research and some factors that are effective to decelerate the research. Apart from the use of philosophical approaches, descriptive design and that of deductive approaches, the research is with several limitations. The first limitation was the time limitations. There was not much adequate time to undertake in-depth research regarding the acquisition and merging of both the ventures. Apart from such, financial reasons are also present to hinder the research. In the words of Schmidt (2015: 425), without proper financial support, the research materials were not subjective to be taken into use that hindered the research to a greater extent.  Consulting to that of sampling, the chosen representatives of the merging activity were unresponsive to a certain extent. Through their unresponsiveness, the research stayed devoid of several important as well as in depth facts.

Figure 3.7: Research limitations 

3.17. Timeline

Gantt chart:

Figure 3.8: Gantt chart 

3.18. Summary

From the above content, the methodology of the overall research can be summarised to produce an overall methodological content. In relevance to the research onion, the research has used positivism philosophy along with a deductive approach. Apart from such the descriptive design is chosen as that of research design. For the research method, primary research is used by virtue of undertaking surveys regarding the acquisition. Further, regression analysis is taken through using SPSS software for sustaining the variables and analysing them to get the outcome. The overall research is chosen for a sample size of 121 respondents including the acquisition managers along with other members. Considering ethics, the research is by the Data Protection Act 1988 with several consultations of maintenance of confidentiality and that of avoiding any sort of deception and exaggeration.

Chapter 4: Findings and analysis

The following questionnaire has been set up to incorporate the analysis for the ongoing dissertation.

1. What are the measures taken for achieving the merger and acquisition aspects?
2. What are the hindrances for undertaking the measurement of merging and acquisition?
3. What are the ways for establishing the relationship between the present factors?
4. What is the impact of the establishing the relationship over the acquisition performance?
5. What are the necessities of merging and acquisitioning the two ventures?
6. Why is it necessary for accessing effective acquisition consulting the ventures?
7. What are the recommended ways for merging and acquisition aspects between that of Microsoft and LinkedIn?
8. What are the reasons for choosing such recommendations?

4.1 Analysis

4.1.1 Concern of independent variable of measures along with dependent variable of hindrances

 

Descriptive Statistics
	Mean	Std. Deviation	N
Measures were taken for acquisition  and merging	2.0083	.76915	121
hindrances	1.7107	.90773	121

Table 1: Descriptive Statistics

Correlations
		Measures taken for acquisition and merging	hindrances
Pearson Correlation	Measures taken for acquisition and merging	1.000	.851
	hindrances	.851	1.000
Sig. (1-tailed)	Measures  taken for acquisition and merging	.	.000
	hindrances	.000	.
N	Measures taken foracquistionandmerging	121	121
	hindrances	121	121

Table 2: Correlations

Variables Entered/Removeda
Model	Variables Entered	Variables Removed	Method
1	hindrancesb	.	Enter
a. Dependent Variable: measurestakenforacquistionandmerging
b. All requested variables entered. Table 3: Variables Entered/Removeda

Model Summary
Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Change Statistics
					R Square Change	F Change	df1	df2	Sig. F Change
1	.851a	.724	.722	.40576	.724	312.187	1	119	.000
a. Predictors: (Constant), hindrances

Table 4: Model Summary

ANOVAa
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	51.399	1	51.399	312.187	.000b
	Residual	19.592	119	.165
	Total	70.992	120
a. Dependent Variable: measurestakenforacquistionandmerging
b. Predictors: (Constant), hindrances

Table 5: ANOVA

Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.	Correlations			Collinearity Statistics
		B	Std. Error	Beta			Zero-order	Partial	Part	Tolerance	VIF
1	(Constant)	.775	.079		9.813	.000
	hindrances	.721	.041	.851	17.669	.000	.851	.851	.851	1.000	1.000
a. Dependent Variable: measurestakenforacquistionandmerging

Table 6: Coefficients

Collinearity Diagnosticsa
Model	Dimension	Eigenvalue	Condition Index	Variance Proportions
				(Constant)	hindrances
1	1	1.884	1.000	.06	.06
	2	.116	4.033	.94	.94
a. Dependent Variable: measurestakenforacquistionandmerging

Table 7: Collinearity Diagnostics

Analysis:

In case of this content, independent variable sustains to be measurement of the aspects of merger and acquisition along with the hindrances present as a dependent variable. For such the descriptive statistics along with that of co-linearity, model summary and that of ANOVA are procured (Refer to appendix 1&2).

Analysis of descriptive statistics:

Concerning to that of descriptive statistics, the dependent variables were with the standard deviation of 0.76915 and that of independent variable being 0.90773. This indicates that the dependent variable being the hindrances are spread over a wider value range against the independent value of the measures of merger and acquisition. Here it can be analysed that the dependent variable has more impact over the independent variable. Contenting to such, the present hindrances are much more defiant over the measures that are to be taken for the merger and acquisition aspects.

Description and analysis on model summary:

Concerning to that of model summary, the total variance that has been accounted for the analysis through regression, that is 0.722 being the value of R sq. is the outcome. Overriding such, the analysis procures the amount of 72.2%, surpassing for the overall variance. Such factors account for the non-horizontality of the of the regression line for the variables presents. Over such account the overall variance is taken for account through the line of regression. The 72.2% of overall variance is taken to be an impressive outcome. It caters to a favourable position concerning the dependent variable with concern of overall variation.

Analysis on co-linearity:

Concerning the co-linearity diagnostics, it has been computed through using the ratio square roots within the larger eigen values concerning that of each eigen value. Here from the analysis it is evident that the maximum condition index value of 4.033 and that minimum value is 1.000. Favouring such, the maximum value is seen lower than that of 15, the optimal co-linearity. Hence it can be analysed that there exists no possibilities of pertaining issues within co-linearity of variables. That means both the dependent and that of independent variables are free from any sort of dimensional co-linearity with any sort of sustained hindrances.

Analysis on ANOVA:

Concerning to that of ANOVA, it has been computed through analysis by singular direction. From the analysis, it is evident that the regression is having difference within them that is indicative of the variables having significant differences within their average time taken to be completed. It is also indicative of having significant statistical differences within the variable present within the module for analysis. As of such, the statistical difference of the hindrances present within the merger and acquisition aspects stays higher.

4.1.2 Concern of independent variable of relationship establishment along with dependent variable of impact

Descriptive Statistics
	Mean	Std. Deviation	N
waysforestablishingfactorrelationship	1.5950	.66556	121
impactofrelationshipestablishment	1.4959	.80751	121

Table 8: Descriptive Statistics

Correlations
		waysforestablishingfactorrelationship	impactofrelationshipestablishment
Pearson Correlation	waysforestablishingfactorrelationship	1.000	.749
	impactofrelationshipestablishment	.749	1.000
Sig. (1-tailed)	waysforestablishingfactorrelationship	.	.000
	impactofrelationshipestablishment	.000	.
N	waysforestablishingfactorrelationship	121	121
	impactofrelationshipestablishment	121	121

Table 9: Correlations

Variables Entered/Removeda
Model	Variables Entered	Variables Removed	Method
1	impactofrelationshipestablishmentb	.	Enter
a. Dependent Variable: waysforestablishingfactorrelationship
b. All requested variables entered.

Table 10: Variables Entered/Removed^a

Model Summary
Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Change Statistics
					R Square Change	F Change	df1	df2	Sig. F Change
1	.749a	.561	.557	.44293	.561	151.954	1	119	.000
a. Predictors: (Constant), impactofrelationshipestablishment

Table 11: Model Summary

ANOVAa
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	29.811	1	29.811	151.954	.000b
	Residual	23.346	119	.196
	Total	53.157	120
a. Dependent Variable: waysforestablishingfactorrelationship
b. Predictors: (Constant), impactofrelationshipestablishment

Table 12: ANOVA

Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.	Correlations			Collinearity Statistics
		B	Std. Error	Beta			Zero-order	Partial	Part	Tolerance	VIF
1	(Constant)	.672	.085		7.899	.000
	impactofrelationshipestablishment	.617	.050	.749	12.327	.000	.749	.749	.749	1.000	1.000
a. Dependent Variable: waysforestablishingfactorrelationship

Table 13: Coefficients

Collinearity Diagnosticsa
Model	Dimension	Eigenvalue	Condition Index	Variance Proportions
				(Constant)	impactofrelationshipestablishment
1	1	1.881	1.000	.06	.06
	2	.119	3.972	.94	.94
a. Dependent Variable: ways for establishing factor relationship

Table 14: Collinearity Diagnostics

Overall analysis:

In the case of this content, the independent variable sustains to be establishing the relationship between the present factors along with its impact present as a dependent variable. For such the descriptive statistics along with that of co-linearity, model summary and that of ANOVA are procured (Refer to appendix 3&4).

Analysis of descriptive statistics:

Concerning that of descriptive statistics, the standard deviations are with values of 0.66556 for the independent variable along with the impact that is the dependent variable being 0.80751. The concerned little difference, existing within the mean deviation, is indicative of the independent variable being impacted to a little extent by the dependent one. The average is also seen favourable for both the variables. Significant differences are taken to be non-existent over both the variables and are subjective of being stated through the thinner line of regression.

Concerning that of model summary, the accounted overall variance analysed through that of regression aspects are taken to be valued at 0.557 as the R sq. value. Concerning such context, the overall variance overrides the total variance aspects through an amount of 52.2%. Such an amount is taken as a satisfactory outcome. It is subjective of catering the3 impact over the relationship establishment compiling the variables to a satisfactory position consulting to that of the total variation.

Analytical approach on co-linearity:

Concerning to that of co-linearity diagnostics, the computational aspects has been cleared through the ratio analysis of square roots concerning the larger eigen values over each values. With respect to the analysis, there are evidence of maximum value of the condition index being 3.972 and that of lower value being 1.000. In respect of such, the maximum limit of 15 is not crossed that entails the fact of variables being towards the optimal co-linearity. Apart from such, is also indicative of lesser issues sustaining the variables co-linearity. It can also be analysed that the present variables are without any sort of dimensional co-linearity hindering the variable existence.

Analysis on ANOVA:

Concerning that of ANOVA, it sustains the analysis through entailing direction over a singular approach. From the graph of calculated ANOVA, here are seen proofs of existing significant differences regarding their average duration required for completion of modules. Apart from such constraints, the graph showcased the analysis of the variable being with favourable statistical differences. Combining the overall aspect, the independent variable is the relationship establishment along with the dependent one being its impacts stays significantly higher in form of statistical difference.

Concern of independent variable of necessities for merging and acquisitions along with dependent variable of its reasons

Descriptive Statistics
	Mean	Std. Deviation	N
necessitiesofmergingandacquisition	2.1074	.94694	121
reasonforneccessities	1.9008	.70006	121

Table 15: Descriptive Statistics

Correlations
		necessitiesofmergingandacquisition	reasonforneccessities
Pearson Correlation	necessitiesofmergingandacquisition	1.000	.770
	reasonforneccessities	.770	1.000
Sig. (1-tailed)	necessitiesofmergingandacquisition	.	.000
	reasonforneccessities	.000	.
N	necessitiesofmergingandacquisition	121	121
	reasonforneccessities	121	121

Table 16: Correlations

Variables Entered/Removeda
Model	Variables Entered	Variables Removed	Method
1	Reason for neccessitiesb	.	Enter
a. Dependent Variable: necessities of merging and acquisition
b. All requested variables entered.

Table 17: Variables Entered/Removed^a

Model Summary
Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Change Statistics
					R Square Change	F Change	df1	df2	Sig. F Change
1	.770a	.594	.590	.60620	.594	173.814	1	119	.000
a. Predictors: (Constant), reason for necessities

Table 18: Model Summary

ANOVAa
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	63.873	1	63.873	173.814	.000b
	Residual	43.730	119	.367
	Total	107.603	120
a. Dependent Variable: necessities of merging and acquisition
b. Predictors: (Constant), reason for neccessities

Table 19: ANOVA

Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.	Correlations			Collinearity Statistics
		B	Std. Error	Beta			Zero-order	Partial	Part	Tolerance	VIF
1	(Constant)	.126	.160		.790	.431
	Reason for neccessities	1.042	.079	.770	13.184	.000	.770	.770	.770	1.000	1.000
a. Dependent Variable: necessities of merging and acquisition

Table 20: Coefficients

Collinearity Diagnosticsa
Model	Dimension	Eigenvalue	Condition Index	Variance Proportions
				(Constant)	reasonforneccessities
1	1	1.939	1.000	.03	.03
	2	.061	5.631	.97	.97
a. Dependent Variable: necessities of merging and acquisition

Table 21: Collinearity Diagnostics

Analysis:

In case of this content, independent variable sustains to be the necessities of merging and acquisitions along with the present reasons as a dependent variable. For such the descriptive statistics along with that of co-linearity, model summary and that of ANOVA are procured (Refer to appendix 5&6).

Analysis of descriptive statistics:

Concerning that of descriptive statistics, the consulted standard deviations values are 0.94694 for the independent variable and the anticipated reasons, being dependent variable valued at 0.70006. The considerable difference, which is evident from the mean deviation, indicates that the independent variable is impacted to an appreciable extent based on the dependent variable. The average on the other hand is seen as favourable consulting the variables. The significant differences are taken to be partially existent sustaining both variables and are subjective of being stated through thinner regression line.

Description and analysis in model summary:

Concerning to that of model summary, total variance that is accounted is analysed through that of regression line which is found to be valued by 0.590 as the R sq. value. Concerning such module, the overall variance measured, surpasses the total variance by a subjective amount of 59%. Such an amount is taken as a partial-satisfactory outcome. It is considered to cater the impact over establishment of relationship commencing the variables towards a favourable outcome, consulting to that of total variation.

Analytical approach on co-linearity diagnostics and ANOVA:

Concerning that of co-linearity diagnostics, there are evidence of the maximum condition index value being 5.631 and the lower value being 1.000. In respect of such, the values are existent within the limitation of 15, procuring the fact of both the present variables being favourable to co-linearity within optimal senses. Such instances indicate the presence of suitably moderate issues that might sustain the co-linearity of variables. It is also analysed the present variables being with favourable dimensional co-linearity that might subject to its existences.

Regarding the ANOVA calculation, it is evident from the analytical graph that the analytical modules of variables are with singular analysis. As evident from that the regression graph, there are seen significant differences in statistics being existent.

4.1.4 Concern of independent variable of recommending ways of merging and acquisition with the dependent variable of its reasons

Descriptive Statistics
	Mean	Std. Deviation	N
recommended ways for merging and acquisition	1.8017	.60028	121
reason for such recommendation choice	1.7934	.87481	121

Table 22: Descriptive statistics

Correlations
		recommended ways for merging and acquisition	reason for such recommendation choice
Pearson Correlation	recommended ways for merging and acquisition	1.000	.683
	reason for such recommendation choice	.683	1.000
Sig. (1-tailed)	recommended ways for merging and acquisition	.	.000
	reason for such recommendation choice	.000	.
N	recommended ways for merging and acquisition	121	121
	reason for such recommendation choice	121	121

Table 23: Correlations

Model Summary
Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Change Statistics
					R Square Change	F Change	df1	df2	Sig. F Change
1	.683a	.467	.462	.44027	.467	104.069	1	119	.000
a. Predictors: (Constant), reason for such recommendations choice

Table 24: Model summary

ANOVAa
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	20.173	1	20.173	104.069	.000b
	Residual	23.067	119	.194
	Total	43.240	120
a. Dependent Variable: recommended ways for merging and acquisition
b. Predictors: (Constant), the reason for such recommendations choice

Table 25: Anova

Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.	Correlations			Collinearity Statistics
		B	Std. Error	Beta			Zero-order	Partial	Part	Tolerance	VIF
1	(Constant)	.961	.092		10.493	.000
	reason for such recommendation choice	.469	.046	.683	10.201	.000	.683	.683	.683	1.000	1.000
a. Dependent Variable: recommended ways for merging and acquisition

Table 26: Coefficients

Collinearity Diagnosticsa
Model	Dimension	Eigenvalue	Condition Index	Variance Proportions
				(Constant)	reason for such recommendation choice
1	1	1.899	1.000	.05	.05
	2	.101	4.347	.95	.95
a. Dependent Variable: recommended ways for merging and acquisition

Table 27: Collinearity Diagnostics

Overall analysis:

The above part has successfully described the impact of the independent variable of recommended ways of merger and acquisition over the dependent variable about the predefined reasons.  Among the above tables, there are descriptive statistics with co-linear, model summary, ANOVA, coefficient and collinearity diagnostics (Refer to appendix 7&8).

Analysis on the output of the descriptive status:

In this part, the researcher has found out that the output from the standard deviation value is .60028 which is interpreting the value of recommended ways for merging and acquisition. On the other hand, standard deviation value for the dependent variable is lower which is denoting the reason for such recommendation and this is .87481. To assess the relevant differences which can be seen from the value of mean deviation and that are 1.8017 and 1.7934. It can be interpreted from such disparity that the independent variable which is the recommended way is considerably affecting the dependents variable. Thus the measures which are necessary to take over an acquisition must be influenced by a specific reason. As in this case, Microsoft has completed the acquisition on LinkedIn as both of them are related to the social networks, internet connectivity and business educational measures. According to the outcome of the average, it has been implied that both the factors must be connected. Based on the difference it can be stated that both of these variables have been taken partially and are subjective to be stated within a thinner line of regression.             

Analysis of the Output of correlations:

This part has been done as the correlation among pairs of variables. As the researcher has found out the Pearson correlation in this part it is more related with bivariation. As the correlation coefficient range in this part is above >.75, then it can be called as a high correlation among the pair of variables. The relationship can be denoted as a significant one. Here, p=1.0 which is <0.05 and it is significant for both linear regression. The researcher can conduct in this part a linear regression which will be more effective than correlation status. However, this relationship is not much stronger but a little weaker. Applying with a linear regression status the researcher can develop a more perfect result from this part.

Analysis of Model summary:

This table is interpreting the regression line’s capacity to account for the total variation in the dependent variable. The limited proportion of the dependent and independent variable in entire variation is suggesting the disparity between the two factors. In this the value of regression line has been accessed as .467. From the overall measures it can be measured that outcome is more or less satisfactory. Thus, it can be considered that commencing the first one will automatically make others involve. The overall status can make to access a satisfactory outcome. As the merger and acquisition have entirely depended on the proper reason and circumstances, it must be important to access a proper position before such commencement.

Description of ANOVA:

The analysis of variance is effective to develop a complete comparison to understand statistical evidence of the related factors. As defined by regression residual it is a set of one-way analyses of variance. The computation of the ‘F’ statistic is 104.069 evaluating that there are significant differences between the two variables. The statistics are more involved than the independent samples. Thus, it can be opined that recommendations about mergers and acquisitions are important more than the reason behind it. If Microsoft is clear about the ways that they can apply at the time to precede with the objectives. It will be easier to commence the task.

Description and analysis on Coefficients:

In this part the b coefficient .961 is suggesting that there is a question about the reliability of the information. Thus, the variables have a positive correlation. Additionally, the b coefficient is 000 in the sig part. There are multiple inter correlated predictors in this part who are defining that the regression set is unique in its descriptive status. Tolerance is 1.0 and as that is bigger than 0.10 (1.0>0.10), it can be indicated that tolerance statistics has not failed.

Analysis of the colinearity diagnostics:

Confirmation about serious problems with multicollinearity can be confirmed with collinearity diagnostics. In the above table, it can be seen that the two eigenvalue are not much close to 0. That is indicating predictors are medially intercorrelated. Condition index has been demonstrating that they are the square roots of those ratios of large eigenvalue. As the values are not more than 15, it can be expected that there are no possible issues that exist in collinearity. Thus, the above part can be suggested as the possible effective outcome about applying the pre selected measures in the upliftment of the issues.

Chapter 5: Conclusion

5.1 Conclusion

The above study has conducted a detailed research about the merger and acquisition of two international and social ventures. The case study has been conducted to understand the impact of previous experiences on acquisition performance of Microsoft and LinkedIn. Initially, the researcher has started with a brief background about the company and the reason behind conduct this research. The outcome from the introduction part has clearly mentioned about the issues that has been providing considerable impact on LinkedIn after the acquisition and merge with Microsoft. Based on the setting of aim and objectives, researcher has gained a complete guidance that what are the objectives that it will meet at the time of conduction of this research. Reviewing of existing literature the study has clearly described about the existing concepts and the two variables that are merger and acquisition along with impact on the organisation. Methodology has guided through all over the research and help to follow specific principles. With assisting of this guidance, the researcher has accessed a clear concept about describing and selecting a method that is compatible with the study.  Data collection and analysis has done with the help of linear regression, that defines about the inter relationship level between the findings at different situation. Overall guidance has successfully maintained to go through a complete recommendation and has established the outcome according to the objectives.

5.2 Linking with objectives

Linking with objective 1: To develop the theoretical underpinnings related to the merging and acquisition procedures of two corporate sector organizations

The first objective has been met in the fifth and sixth questions in the part of findings and analysis. The findings are related to the necessity to conduct mergers and acquisitions with a different venture. Additionally, it has also assisted to develop the idea about accessing effective mergers and acquisitions. In contrast with the theoretical concept it can be seen that there are some aspects of difference in the practical ground. The effectiveness of acquisition is necessary as it can help to overcome the initial barriers and help to achieve profit in the long term of the business. According to the theoretical part there is a definition of the changes in an organisation. In addition to this, it has also suggested the factors of communication that is also important to follow at the time and after acquisition and merging.

Linking with objective 2: To establish the relationship between the strategic alliance and acquisition experiences on acquisition performance

The second objective has fulfilled in the first and second question in the discussion and analysis part. Discussion and analysis about the proper measures to achieve the acquisition aspect are helpful to meet the objectives. It can also define that the previous experience on such commencement can help to conduct the process more properly. On the other hand, there are theoretical analyses about cultural mergers, process design and leadership that can help to overcome the initial issues that the workers usually face after such a work process.

Linking with objective 3: To evaluate the necessity that makes it urgent to acquire and merge with a bigger venture

This objective has successfully met in the third and fourth questions of the data findings and analysis part. As there are findings about the relationship established between present factors, the researcher can found out the requirements; that has compelled the comparatively smaller firm to merge with a bigger one. Additionally, there are detailed descriptions about the concept of effective evaluation and resetting the current work process. As LinkedIn has merged with Microsoft it must about to access a broader platform in order to enhance the business objectives. Impact of establishing relationship has suggested with analysing relation between two variables. Thus the objective has been met effectively with the help of assessing the effectiveness of merger and acquisition.

Linking with objective 4: To recommend the ways that can be used to achieve the best effect from merger and acquisition of two different companies

This objective has been met in the seventh and eighth questions of the findings and analysis part. Recommendations are provided with help of SMART objectives below:

Recommendation: Microsoft can uplift the business performance of LinkedIn with the help of previous acquisition experience and developing its internal process

Specific	LinkedIn is facing serious issues and decreasing customer visits to its website due to a lack of up-gradation. Additionally, they cannot provide relevant information to the visitors. In order to overcome these issues, Microsoft can focus on its internal business process. If the venture can bring some relevant changes in its business process it will be easier to regain the users. For example, that can provide employees who will gather and represent data regarding education, career guide and entrepreneurship.
Measurable	Being an internationalized software business venture it can be easily achieved by Microsoft. With the relevant changes inside the work process existing employees can feel influenced and dedicated to innovate new working section. The creativity will be helpful for both of the firms. The users of both Microsoft and LinkedIn will be interested in using this app.
Attainable	The recommendation about bringing some change is effective to attain for the betterment of this venture. The objectives to develop the internal working ability can be met with proper training, employee motivation and influence to the employees. In applying the changes Microsoft will access a better business profit and it will help them to develop the software by adding more features.
Relevant	The proposed measure is not irrelevant as it can provide benefits for both of the ventures. Additionally, the effect if improper management has affected the work process of this venture whereas; more focus on innovation can create the possibility to enlarge market share. As LinkedIn is a social career guide, business networking app, the employees must provide relevant information. They can enlarge the scope with free access facilities that will make more people interested to use this app.
Time bound	It is indeed a long term process that to rectify the entire working process in a business firm. The proposed method can be achieved within a year with exact planning and execution.

Table 5.1: SMART recommendation regarding the work process evaluation of LinkedIn by Microsoft

Recommendation: LinkedIn can focus to acquire the technological excellence and infrastructure development to be the best career guide

Specific	Being a smaller firm it still uses the older versions that are creating several disadvantages at the time of using the app. Initially, the software infrastructure and technological up-gradation are necessary to solve the issues at the time of use. Disadvantages at the time of using the site will affect the users. They can witch or avoid the use in case of such issues.
Measurable	As the company face challenges regarding to the low customer’s percentage, with the help of technological advancement it can provide upgraded using facilities. For example, the person who is interested to open a new business in automobile sector can get details of the dealers and contact with them. Moreover, the opportunity to access and connect with multiple people in a same career field will be effective to gain interest of the users.
Attainable	This recommendation is effective to be attained by LinkedIn. It can provide its employees to access training from experienced professionals. Moreover, the installation of new technology needs to be adopted by workers and it can be done with a collaborative learning process.
Relevant	It is relevant as the company needs to achieve a better user’s percentage. Additionally, they will be benefitted by working with the most advanced software; customers can get a personalized experience in accessing the site. Apart from this short term result, the ventures will expanse the business in the long term. It can enhance the user facilities with the addition of new options and subtracting an older one.
Time-bound	Transformation of the technological section is not easy way as it requires time. On the other hand, employees required training to learn the usage and application of these changes. The entire task can be done within five to six months.

Table 5.2: SMART recommendation adopting and technological excellence from Microsoft

Recommendations	Determination of the strategy (15-30 days )	Application (1-2 months)	Monitoring and evaluation (4-5 months)	Successful transformation (5-9 months)	Expected outcome (9-10 months)
Recommendation 1	10 days	1 month	5 months	9 months	4 months
Recommendation 2	20 days	2 months	3.5 months	6 months	2 months

 

Table 5.3: A proposed timeline for meeting the recommendations

5.3 Future scope and limitations

The study has conducted research based on mergers and acquisitions in the software and social networking field. This will be helpful for future researchers to access an idea about such events. The impact of the larger firm on the smaller one will help them to know about the possible circumstances rises after such commencement, in part of limitations the study has not focused on a specific issue that LinkedIn face after the acquisition with Microsoft.

6. Reference list

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Cartwright, S., & Cooper, C. L. (2014) Mergers and acquisitions: The human factor. Oxford: Butterworth-Heinemann.

Faulkner, D., Teerikangas, S. and Joseph, R. J., (2014). The handbook of mergers and acquisitions, Oxford University Press.

Galpin, T. J., & Herndon, M. (2014) The complete guide to mergers and acquisitions: Process tools to support M&A integration at every level. New Jersey: John Wiley & Sons.

Howson, P. (2017). Due diligence: The critical stage in mergers and acquisitions. Abingdon: Routledge.

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Yin, R.K., (2013) Case study research: Design and methods. Sage publications

Journals

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7. Appendices

Appendix 1: Merger and acquisition measures

Options	No. of respondents	% of respondents	Sample size
Secure and efficient sharing of information	35	30%	121
Evaluation of liquidity along with the financial capability	50	41%	121
Goals establishment along with measures	36	29%	121

Table 1: Merger and acquisition measures

Appendix 2: Hindrances in merger and acquisition measures

Options	No. of respondents	% of respondents	Sample size
Employee retention challenges	72	60%	121
Communication challenges	12	10%	121
Cultural challenges	37	30%	121

Table 2: Hindrances in merger and acquisition measures

Appendix 3: Relationship establishment methods

Options	No. of respondents	% of respondents	Sample size
Mitigation of significant business risks	61	50%	121
Blocking of competitive threats	48	40%	121
Minor equity investment	12	10%	121

Table 3: Relationship establishment methods

Appendix 4: Impact of relationship establishment

Options	No. of respondents	% of respondents	Sample size
Strategic provisions being non-competitive	85	70%	121
Cultural fitness	12	10%	121
Company values alignment aspects	24	20%	121

Table 4: Impact of relationship establishment

Appendix 5: Necessities of merger and acquisition

Options	No. of respondents	% of respondents	Sample size
Increment of market share	48	40%	121
Supply chain vertical integration	12	10%	121
Accessibility to patents and R&D	61	50%	121

Table 5: Necessities of merger and acquisition

Appendix 6: Necessity reasons of merger and acquisition

Options	No. of respondents	% of respondents	Sample size
Synergy aspects	36	30%	121
Business focus sharpening	61	50%	121
Competition elimination	24	20%	121

Table 6: Necessity reasons of merger and acquisition

Appendix 7: Recommendations for merger and acquisition

Options	No. of respondents	% of respondents	Sample size
The concern of liquidity health	36	30%	121
Execution of due diligence	73	60%	121
Compensation and communication	12	10%	121

Table 7: Recommendations for merger and acquisition

Appendix 8: Reason for recommendation

Options	No. of respondents	% of respondents	Sample size
Procurement of in-depth analysis	61	50%	121
Financial stability	24	20%	121
Employee management	36	30%	121

Table 8: Reason for such recommendation