This chapter uses insights from the broad literature of corporate organization and governance, including the roles of mergers and acquisitions, in order to cast a light on the current debates regarding the UK interregional economic systems and its relationship with the central–sub-central economic governance of the UK. These lines of organizational thinking, and especially those which focus on how the logic and behavior of the organizational fits with economic and technological environment in which the organization operates, are very useful in providing a methodological framing for discussing the priorities and challenges associated with reforming the UK central–sub-central governance system. In the UK, the governance system has become ever more mismatched and detached from the regional economic realities, and this chapter therefore uses the organizational logic associated with large multi-plant and multi-national firms in order to consider how to rectify this mismatch. Following this logic, the chapter demonstrates that while devolved decision-making is broadly desirable, the specific financial and fiscal details of devolved system are crucial in terms of determining whether the reformed system is likely to be effective, and that many of these details have barely, if at all, yet been sufficiently articulated.
Over the past decade, environmental, social, and governance (ESG) considerations have become increasingly integral to corporate strategic investment decision-making processes, with a particular emphasis on the relationship between ESG factors and mergers and acquisitions (M&As). As businesses face growing pressure to align with sustainability goals, ESG performance has become a key metric for assessing long-term value, fostering responsible business practices, and addressing the concerns of stakeholders. This shift has led corporate boards to reconsider the role of M&As in driving sustainable growth and creating value in a rapidly changing global market. The UK, as a prominent global financial hub, has been at the forefront of these developments, with UK-based firms often using M&A as a tool to enhance their ESG portfolios. In contrast, foreign investors view the UK not only as a gateway to European markets but also as a testing ground for integrating ESG principles within corporate strategies. A notable aspect of this is the UK’s regulatory framework for corporate ESG disclosure, which serves as an important attraction for international investors. A critical factor in driving ESG performance during M&As is the green governance structure, which acts as a pre-decision control mechanism, shaping the strategic direction of M&A deals. This chapter sheds light on the interdependencies between the above-stated constructs.
Despite its enduring popularity as a critical strategy for corporate growth and transformation, most mergers and acquisitions (M&As) fail to create value for firm stakeholders. While post-merger integration is widely recognized as the phase where value destruction often occurs, the pre-deal decision-making phase—characterized by commercially sensitive, confidential, and highly judgmental decisions—plays an equally pivotal role. Key decisions, such as selecting the target company and determining the purchase price, are fraught with complexity and ambiguity. Mistakes made during this phase inevitably surface in post-merger integration, fundamentally influencing the overall success or failure of the acquisition. Acquisitions are complex, ambiguous, and often controversial strategic decisions. The lack of theoretical insights and empirical evidence surrounding pre-deal decision-making hinders a comprehensive understanding of this critical stage. This chapter develops an integrative framework that contextualizes the pre-deal phase of M&A by integrating four key categories of contextual factors: top management team (TMT), firm characteristics, deal-specific characteristics, and environmental factors. By advancing the theoretical understanding of how these factors shape pre-deal decision-making, this chapter provides a contextualized explanation of the processes underpinning acquisition performance, offering valuable insights for both researchers and practitioners.
Planning is very salient to the practice of merger integration; however, it has been marginalized in recent organizational research. Moreover, whereas the literature on mergers has given little attention to planning, the latter is a central activity in public management. In this chapter, we examine the dynamics of merger planning, generally, and specifically in the context of the public sector. The study is positioned at the nexus of the literatures on merger integration, planning, and public management. It scrutinizes the dynamics of planning by focusing on the role of value judgments in shaping this activity. The analysis uses case-based material to outline and illustrate themes in merger integration that matter to planning and the public sector. The chapter offers two readings of integration planning in this case. The first shorter reading presents an overview of the dynamics unfolding in this study by juxtaposing them against respective themes in the literature on merger planning. The second, more detailed reading focuses on dynamics specific to the public sector. The analysis shows how contextual value judgments shape participants’ views on planning, specifically through the legacies of managerialism, public choice theory, and public participation. It identifies and illustrates three respective overarching themes that matter to public sector mergers: the planning ethic, the fear of capture, and the normativity of consultation. While these themes have constructive effects on merger integration, they also have constraining effects with implications for learning, (mis)trust and communication. The work concludes by outlining an agenda for future research.
