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Research Question: “How is labour productivity affected when a firm in the service industryacquires or merges with another company?”

Purpose: The purpose of this thesis is to explain the various changes to fundamental variables underlying labour productivity for a service firm undertaking M&A activities.

Method: Qualitative method, semi-structured interviews, questionnaires with open questions, inductive approach.

Conclusions: The authors describe both theoretically and empirically how M&As can affect labour productivity in the service sector. In the theoretical framework the main factors that can affect productivity is stated as well as information regarding M&As to give the reader a better understanding of the subject of this thesis. From this a conclusion is drawn that labour productivity fluctuates and decreases in the short run following an M&A, but increases in the long-run.

Contribution of the thesis: This thesis contributes to the wider research society since it is established that there is a lack of current studies. It also helps senior managers to understand the consequences that M&As can cause.