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MERGERS & ACQUISITIONS IN ELEVATOR INDUSTRY: THE ROLE OF ICTs TO AVOID INFORMATION ASYMMETRY
  • Juan de la Guardia,
  • Miguel Palacios,
  • Ricardo Zurdo
Juan de la Guardia
Universidad San Pablo CEU

Corresponding Author:[email protected]

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Miguel Palacios
ESCP Business School - Madrid Campus
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Ricardo Zurdo
Universidad San Pablo CEU
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Abstract

Mergers and Acquisitions operations continues to be one of the most explored growth strategies globally in all markets, and also in the Elevator Industry. Volume of investments grows year after year. It is the fastest way to grow in international and domestic markets, but the reality is that a high percentage of the operations carried out do not meet the expectations of the investors when the integration phase, called the post-acquisition phase, has been completed. There are several causes of failures on mergers and acquisitions processes, such as lack of commitment from the management, unrealistic business plan, cultural shock, etc … But the most common and the one with the highest risk in an acquisition decision, is the asymmetry of information. During the negotiation phase a large amount of data is collected, and subsequently analyzed during the Due Diligence period, but does not correspond to reality during the integration phase. That is, the information that the seller has provided, and has been studied and analyzed to take a decision of acquire by investors, has not been the real and complete one. In this article we will propose how the asymmetry information can be avoided by the application of Information and Communication Technology (ICT) through the IoT of the elevators. Same can be applied to other industries.