Mergers & Acquisitions: A Guide to Creating Value for Stakeholders
Oxford University Press, 2001 M03 22 - 240 pages
In 1999, MCI WorldComm and Sprint agreed to merge. Valued at $129 billion, this expected transaction was the largest in history. However, it fell victim to regulators in Europe concerned with the potential monopoly power of the merged firm. This M&A action was merely the latest in a growing trend of "blockbuster" mergers over the past several years. Once a phenomenon seen primarily in the United States, mergers and acquisitions are increasingly being pursued across national boundaries. In short, acquisition strategies are among the most important corporate-level strategies in the new millennium. The need for clear, complete, and up-to-date guide to successful mergers and acquisitions had never been greater. This book more than fills that need. Looking at successful--and unsuccessful--mergers and acquisitions in a number of different industries, Mergers and Acquisitions: A Guide to Creating Value explains how to conduct an acquisition and how to avoid pitfalls that have doomed many such ventures. The authors take the reader step-by-step through the process, starting with the elements of a successful merger, due diligence to ensure that the target firm is sound and fits well with the acquiring firm, and how mergers and acquisitions are financed. They move on to explore how firms find partners/targets for acquisitions that have complementary resources and how to find partners with which integration and synergy can be achieved. Finally, they discuss the potential hazards found in M&A's and how to avoid them, how to conduct successful cross-border acquisitions, and how to ensure that ethical principles aren't breached during the process. Based on 15 years of research, this essential guide goes beyond specific case studies to cover all aspects of these ventures, making it required reading for all managers seeking to build a successful strategy.
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2 Exercising Due Diligence
3 Financing an Acquisition
4 Looking for Complementary Resources
5 Seeking a Friendly and Cooperative Merger
6 Achieving Integration and Synergy
7 Learning from Experience
8 Avoiding the Hazards of Diversification
Academy of Management achieve acqui acquiring firm acquisition activity acquisition strategy acquisition success analysts announced assets AT&T Attributes of successful bank billion cash Cendant chapter Chrysler Chrysler Corporation combined competitive advantage competitors complementary resources completed CompUSA corporate costs create synergy cross-border mergers culture Daimler-Benz DaimlerChrysler Dallas Morning deal debt levels decision develop diversification due diligence due diligence process economies of scale effective employees example firm's global hostile takeover increase industry integration internal innovation investment bankers investors Journal Interactive Edition Lipin M. A. Hitt market power merged merger or acquisition mergers and acquisitions operations organization organizational learning outcomes percent poison pill positive potential premium problems product lines purchase R. D. Ireland R. E. Hoskisson reduce result share sition stakeholders stock price strategic fit Strategic Management Journal Street Journal Interactive successful acquisitions synergy creation target firm shareholders tion tive transaction United Vodafone Wall Street Journal
Page 4 - The 1980s produced approximately 55,000 mergers and acquisitions in the United States alone. The value of the acquisitions during this decade was approximately $1.3 trillion. As impressive as these numbers are, they are small in comparison to the merger wave that began in the earlier 1990s, approximately in 1993. The number and value of mergers and acquisitions have grown each year since 1993. For example, in 1997, there were approximately 22,000 mergers and acquisitions, roughly 40 percent of the...