Combination Potential: The combination potential reflects how much of this synergy is going to be realized.

Combination Potential can be conceptualized as the degree of association, by the industry affiliations. The traditional conceptualization focus on the similarity of the operations. Operational synergies in Production, Marketing, R&D and Administration. Trough, Economies of scale, Vertical Economies and Economies of Scope. Collusive synergy from Market and Purchasing Power. Managerial Synergies from applying complementary competencies or replacing incompetent managers Financial synergies from risk diversification and coinsurance. There are also complementary synergy sources trough the chain: Synergy from Market Access Knowhow that enhance one another Different Products Synergies can be achieved trough both economies of sameness (accumulating similar operations) and economies of fitness(combining different, but complementary, operations) Organizational Integration: degree of interaction between the joining firms, Ex.: Restructuring and material flows the coordination between the two companies, most importantly, the quality of the coordinative the effort to improve the integration, Ex.: Transition teams, pre-planning. Employee Resistance:

Is the individual and collective opposition of employees to the integration of the joining firms. Active Opposition, ex.: by voice, voluntary exits and sabotage) Passive Opposition, ex.: absenteeism, disobedience and avoiding work or duty ) WHY??? Psychological perspective vs. they antagonism We Showing superiority attitudes Distrust Tension Hostility Career perspective Forced lay-offs Relocation Loss of individual influence The most important is that the person was working with its routine and now everything has to be changed. Management Style Similarity The degree which managers emphasize risk-taking, authority and structure. When there is similarity: For the Employee resistance The level of cooperation is often enhanced The perceptions of the changes taking place may be lower For the Organizational Integration: The cooperation can increase the chance that synergies will be realized. Because the interaction and coordination necessary for M&A success can be produced with less chances of disagreements. Cross-border Combination: Synergy can be affected by whether the companies are located in the same country, province, region, etc. Organizational Integration synergy can be lowered by: Geographic distances Legal Factors Financial Factors Other country differences Employee Resistance: Cultural clashes can increase resistance Combination Potential: Speed new market access Promote globalization synergies Relative Size Combination Potential:

 When the acquired company is much smaller the combination potential will be limited by size constraints. Small acquisitions are less likely to offer the full range of combination potential Organizational Integration: Smaller M&A don't receive sufficient managerial attention to turn potential synergies into realized ones. In a sample of 69 acquisitions, the sales of the acquired firm constituted less than 2% of the acquirer's sales, in 84% of the transactions classified as failures.