A conceptual model of individual competency components as one of the predictors of success in mergers and acquisitions

The increasing challenge of how to balance “soft” human factors with “hard” financial factors in mergers and acquisitions (M&A) to be successful is not new. However, the real challenge lies in the question of how, and with which yardstick, to measure and compare the human factor in both the acquiring and the acquired companies in all phases of M&A. In this study, a model for measuring and comparing the human factor with competencies is presented. The model enables the measuring of soft factors with quantitative criteria. A tripartite individual competency components construct is conceived: cognitive, affective and conative, to which the personal value system is added. The model discussed is based on empirical findings and the cases of two companies and literature. The model enables companies to compare differences in competencies and thus to plan activities how to overcome those differences and achieve a higher success rate in M&A.