Corporate Acquisitions: The Merging of Habitual Domains *

Abstract

This paper illustrates how an understanding of the concepts and issues associated with organizational and individual habitual domains can significantly improve the analysis of acquisition alternatives. Specifically, we stress the importance of a more comprehensive analysis of acquisitions, one that goes beyond an examination of just financial and economic issues and recognizes the importance of the human side of acquisitions. Consideration of the human aspect is important not only in pre-acquisition analysis but also in how the acquisition is to be eventually implemented. This paper emphasizes issues related to the habitual domains of the two organizations, the fit therein, and the potential costs associated with their assimilation. Based on the same, we develop a framework which can be used for a more comprehensive and effective analysis of acquisition opportunities.