Micro cap mergers & acquisitions/takeover integrations: success or failure?

This study investigates mergers and acquisitions (M&A) or takeover integrations of private unlisted companies with value less than AUD$50 million, of which we define as micro cap. We acknowledge that micro cap generally refers to listed companies, but in this study, the term micro cap is adopted for easy reference. In particular, this study examines the determinants of successful micro cap integrations. It also contributes to the understanding of micro cap M&A by applying an integration perspective. This perspective in the context of micro cap has been neglected in past research on M&A, but is imperative to understand the pitfalls and problems that hinder successful micro cap integrations. Semi‐structured interviews with five Australian micro cap acquirers who have done multiple transactions in the past seven years were conducted. The general results obtained shows significant similarity to the literature which is mainly focused on large corporation M&A. It does, however, highlight some interesting insights and problems encountered during micro cap integration that are not common for the M&A of larger firms. This study would be beneficial especially to micro cap acquirers, as well as future researchers of this context.