Strategic Integration in Mergers and Acquisitions
Simulation Statistics
Duration: 2 hours
Modality: synchronous; in-class or remote learning
Author: Robert W. Holthausen
Subject: Finance, Business Strategy, Mergers and Acquisitions
Learner Level: Undergraduate, Graduate, and Executive Education
Team Size: 3-6 players/team
Participants assume the role of an executive team responsible for managing a major acquisition. They make critical integration decisions, observe how these choices influence organizational outcomes over time, and have the opportunity to revise their approach based on performance feedback, culminating in a final bid for the target company.
MegaMicro Jentronix drops students into the high-stakes world of corporate mergers, challenging them to navigate the financial and strategic complexities of acquiring and integrating a new company. This simulation immerses participants in a case-based scenario where they are part of the core management team of a company under
going an acquisition. Teams of 3–6 players collaborate to make key decisions about how best to structure the merger — from allocating representatives from the acquired firm to deciding how operations, culture, and finances will blend. Along the way, students must analyze income statements, balance sheets, and cash flow reports to inform their strategy. After several preliminary acquisition “runs,” students can submit final bids, ultimately seeking to generate the maximum value for their company.
Developed by Bob Holthausen, Professor of Accounting and Finance, now teaching in Executive Education, MegaMicro Jentronix puts students’ due diligence to the test as they create their merger blueprints and work together to avoid the potential risks and pitfalls of bringing a new business entity into their fold.
What makes MegaMicro Jentronix compelling is its demonstration of the delicate balance between good intentions and poor execution, especially as business ambitions grow. Students learn how even a strong acquisition target can lead to a value-destroying merger if integration decisions are mishandled. At the end of the simulation, faculty can view all student decisions and resulting outcomes, providing a rich platform for discussion and debrief.
About the Authors
Robert W. Holthausen is the Nomura Securities Company Professor of Accounting and Finance. Prior to coming to Wharton, he was a Professor of Accounting and Finance at the Graduate School of Business of the University of Chicago. He earned his doctorate at the University of Rochester where he also earned his M.B.A. Prior to his academic career, he was a C.P.A. working at Price Waterhouse and he was also in the finance group at Mobil. Read More.
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