Reasons for Frequent Failure in Mergers and Acquisitions : A Comprehensive Analysis /
By: Straub, Thomas [author.].
Contributor(s): SpringerLink (Online service).
Material type:
BookPublisher: Wiesbaden : Deutscher Universitätsverlag : Imprint: Deutscher Universitätsverlag, 2007.Description: XIV, 227 p. online resource.Content type: text Media type: computer Carrier type: online resourceISBN: 9783835096370.Subject(s): Business | Management | Leadership | Business and Management | Business Strategy/Leadership | ManagementDDC classification: 658.4092 Online resources: Click here to access online
In:
Springer eBooksSummary: Despite the goal of performance improvement, results from mergers and acquisitions (M&A) are often disappointing. Numerous empirical studies show high failure rates of M&A deals. Studies are mostly focused on individual determinants. The literature therefore lacks a more comprehensive framework that includes different perspectives. Using four statistical methods, Thomas Straub shows that M&A performance is a multi-dimensional function. For a successful deal, the following key success factors should be taken into account: • Strategic logic which is reflected by six determinants: market similarities, market complementarities, operational similarities, operational complementarities, market power, and purchasing power. • Organizational integration which is reflected by three determinants: acquisition experience, relative size, cultural compatibility. • Financial / price perspective which is reflected by three determinants: acquisition premium, bidding process, and due diligence. All 12 variables are presumed to affect performance either positively or negatively. Post-M&A performance is measured by synergy realization, relative performance (compared to competition), and absolute performance.
| Item type | Current location | Call number | Status | Date due | Barcode | Item holds |
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E books
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PK Kelkar Library, IIT Kanpur | Available | EBK7342 |
Despite the goal of performance improvement, results from mergers and acquisitions (M&A) are often disappointing. Numerous empirical studies show high failure rates of M&A deals. Studies are mostly focused on individual determinants. The literature therefore lacks a more comprehensive framework that includes different perspectives. Using four statistical methods, Thomas Straub shows that M&A performance is a multi-dimensional function. For a successful deal, the following key success factors should be taken into account: • Strategic logic which is reflected by six determinants: market similarities, market complementarities, operational similarities, operational complementarities, market power, and purchasing power. • Organizational integration which is reflected by three determinants: acquisition experience, relative size, cultural compatibility. • Financial / price perspective which is reflected by three determinants: acquisition premium, bidding process, and due diligence. All 12 variables are presumed to affect performance either positively or negatively. Post-M&A performance is measured by synergy realization, relative performance (compared to competition), and absolute performance.
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