TY  - JOUR
A1  - Lind, S. C.
A1  - Lattuch, F.
T1  - M&As in family firms: keeping trust in the equation
T2  - Journal of Business Strategy
N2  - Purpose. Experience suggests that a loss of trust may occur on both sides of the merger and acquisition (M&A) equation – acquirer and acquiree – though the latter is more generally considered the most affected. The purpose of this paper is to explore how a loss of trust during the M&A process in family firms can be avoided. An acquisition potentially triggers a loss of trust in the workplace and, as a result, a loss of productivity thereby causing the merged business to totter. Moreover, trust in a firm’s owner tends to be a key driver in merging family firms.

Design/methodology/approach. The authors investigated an expanding German family firm that recently acquired other family firms. They conducted in-depth interviews on all hierarchical levels in both the acquiring and the acquired firm. These cases are taken from a wider study of acquiring family firms completed in 2019.

Findings. Value congruence, integrity and openness are found to enhance trust during M&As, in particular, if the new owner of a merged enterprise is also a family entrepreneur. Under certain circumstances, the trust of employees in the acquired firm’s previous owner can be transferred to the new owner.

Originality/value. This study explores how specific circumstances of family firms impacts organizational trust in M&A processes. The developed framework helps family firms to use characteristics of their specific nature as an asset to maintain their employees’ organizational trust before, during and even after M&As.
KW  - Trust, Change, Values, Family Firms, Merger, Acquisition
Y1  - 2021
UR  - https://www.hb.fh-muenster.de/opus4/frontdoor/index/index/docId/12308
VL  - 42
IS  - 3
SP  - 188
EP  - 195
ER  -