The synergy trap : how companies lose the acquisition game / Mark L. Sirower.

Format:

Book

Author/Creator:

Sirower, Mark L., 1962-

Language:

English

Subjects (All):

Consolidation and merger of corporations--United States.

Consolidation and merger of corporations.

Management buyouts.

United States.

Tender offers (Securities)--United States.

Tender offers (Securities).

Management buyouts--United States.

Competition--United States.

Competition.

Risk--United States.

Risk.

Physical Description:

xiv, 288 pages : illustrations ; 24 cm

Place of Publication:

New York : The Free Press, [1997]

Summary:

Building on his groundbreaking research first cited in Business Week, Mark L. Sirower explains how companies often pay too much - and predictably never realize the promises of increased performance and competitiveness - in their quest to acquire other companies. Armed with extensive evidence, Sirower destroys the popular notion that the acquisition premium represents potential value. He provides the first formal and functional definition for synergy - the specific increases in performance beyond those already expected for companies to achieve independently. Sirower's refreshing nuts-and-bolts analysis of the fundamentals behind acquisition performance cuts sharply through the existing folklore surrounding failed acquisitions, such as lack of "strategic fit" or corporate culture problems, and gives managers the tools to avoid predictable losses in acquisition decisions. The Synergy Trap is the first expose of its kind to prove that the tendency of managers to succumb to the "up the ante" philosophy in acquisitions often leads to disastrous ends for their shareholders. Sirower shows that companies must meticulously plan - and account for huge uncertainties - before deciding to enter the acquisition game.

Notes:

Based on the author's thesis (doctoral--Columbia University)

Includes bibliographical references (pages 225-273) and index.

ISBN:

0684832550

OCLC:

35627731