A Comprehensive Review of Factors Influencing Mergers and Acquisitions in Technology Startups

Technology startup firms have emerged as primary generators of innovative technologies and products. Established corporations strategically employ mergers and acquisitions (M&A) and collaborative alliances to seamlessly integrate these innovations into their operations. Concurrently., venture capital firms (VCs) regard exits as pivotal elements within their investment strategies among their life cycle., considering M&A as a pivotal exit strategy., alongside initial public offerings (IPOs). Variations exist among countries., where M&A exits are more prevalent in certain regions., while IPOs remain the principal exit strategy in others. Despite this landscape., a comprehensive understanding of enabling and inhibitory factors influencing M&A transactions remains incomplete. This study addresses this gap by conducting a systematic review and organization of previous research on the factors influencing and outcomes of M&A., employing a logical model. These factors include macro factors., such as political., economic, social, and technological factors., and key stakeholders., including start-ups., established corporations as acquirers., VCs., and others. Finally., we discuss the landscape and their related factors.