Journal of Management 2004 30(4) 545–562 Can a Previous Alliance Between an Acquirer and a Target Affect Acquisition Performance?

Throughout the 1990s, organizations have been combining resources through acquisitions and alliances in record numbers. An acquirer’s previous alliance with a target may give an acquirer target-specific information and experience that may be an advantage-producing resource in selection, valuation and integration of the target. This study investigates whether a previous alliance between an acquirer and a target affects post-acquisition performance and finds that a previous alliance between an acquirer and a target correlates positively with acquisition performance. Acquirers ’ previous R&D, technology transfer, manufacturing and marketing alliances with targets benefit acquisition performance more than their previous licensing alliances with targets. Furthermore, target-specific learning effects are strongest and most beneficial to acquisition performance in acquirers ’ previous technology transfer and manufacturing alliances with targets. © 2004 Elsevier Inc. All rights reserved. Acquisitions and alliances have become popular modes by which organizations combine resources. Throughout the 1990s, acquisitions increased by an average of 18.3 % per year and alliances increased by an average of 34.1 % per year (Data source: Securities Data Cor