Chapter 5: Strategic Planning and Organizational Integrity in Family Firms: Drivers for Successful Postintegration Outcomes in M&A Procedures

This chapter focuses not on how abnormal results from mergers and acquisitions (M&As) are distributed among shareholders after the deal is done, but rather on 2 specific variables that drive superior postintegration outcomes in family business M&A cases: Premerger strategic planning and the level of the acquirer’s organizational integrity. Two propositions were generated. One constitutes a conditional relationship between the family firm organizational integrity and premerger strategic planning. The second one shows the component effect that the degree of integration complexity between the family businesses (acquirer and acquiree) has in the overall postintegration results. We conclude that the level of organizational integrity of the family business acquirer (ethical part), as well as its degree of premerger strategic planning (strategy part) determines to a great extent the postintegration ending of the M&A process. In addition, we developed a general framework and family business typology that relates Strategy, organizational Integrity in Postintegration outcomes (SIP) in M&A deals.