Mergers and Acquisitions in the 21st century:the success story of two multinational corporations

Mergers and acquisitions (M & As) are frequently considered as a faster way for companies to grow and to increase competitiveness, efficiency and market shares. Success factors of the M & As have been thoroughly researched and described in the past. Nevertheless, in the 21st century, the success factors of M & As have changed. Historically, the management of the M & A project and a rigorous implementation were considered as the most important success factors. Nevertheless, the economic environment of the 21st century has caused a shift in the suggested M & As strategies, which have become more comprehensive, covering multiple areas within the company. In this context, the objective of this case study is to analyze the acquisition of Wyeth by Pfizer, evaluate whether this acquisition has been successful or not, and analyze the key success factors. Our results show that the M & A has been successful in terms of reaching its synergistic goals and improving the financial performance of the companies involved. On the other hand, the staff reductions negatively impacted the image of Pfizer and the pharmaceutical industry as a whole, therefore the acquisition has not been as successful as it could have been, even though it is still considered to be one of the most successful acquisitions in the 21st century.