Title: Study of the Obstacles Faced by Public Accounting Firms in Undertaking Mergers

Authors: TRIANA MAYASARI

Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya

Publisher: Universitas Airlangga

Abstract

Increasingly fierce competition in the business world in the free market era requires companies to have strong and professional management to survive and thrive. Therefore, companies need to develop an appropriate strategy to maintain their existence and improve their performance. One approach companies can take is expansion. One form of expansion is through mergers.

This study aims to determine the rational reasons, benefits obtained and operational constraints that occur in Public Accounting Firms (KAP) that merge and the reasons and constraints of KAPs that do not merge.

This research is a qualitative research using in-depth interview methodology with respondents, namely auditors who are positioned as owners or partners of KAPs that have not merged, and who have merged with other KAPs as well as parties within KAPs who have positions in strategic decision-making.

The conclusion of this study, which uncovers all the obstacles faced in conducting mergers, is that a number of public accounting firms in large cities like Jakarta and Surabaya have already merged, and this number is quite large. This is different from other cities. This is because some public accounting firms are unwilling to take the risks that companies face when merging. However, the benefits are substantial. This requires a comprehensive examination. Therefore, this study reveals all the benefits and obstacles encountered as consideration for public accounting firms that have not yet merged.

Many preparations are necessary for a merger, including funding for operational costs, additional knowledge, and a wider range of expertise to ensure the merger creates the synergy the company desires. Finding a suitable partner requires a unification of opinions and perspectives on the company's vision, mission, and goals. This is to avoid the merger's dissolution due to problems arising from these differences of opinion.

Suggestions for further research: Given that this type of research hasn't been widely conducted, further research is needed to gain a deeper understanding of all aspects of this KAP merger. To gain a broader understanding of this issue, it's necessary to expand the respondent population to other regions, even nationally.

Keywords: Accounting firm, strategic merger, in-depth interview, cultural problems.

Sources: http://repository.unair.ac.id/34664/