Reasons for Frequent Failure in Mergers and Acquisitions : A Comprehensive Analysis / by Thomas Straub.

Format:

Book

Author/Creator:

Straub, Thomas., Author.

Language:

English

Subjects (All):

Leadership.

Management.

Business Strategy/Leadership.

Local Subjects:

Business Strategy/Leadership.

Management.

Physical Description:

1 online resource (241 p.)

Edition:

1st ed. 2007.

Place of Publication:

Wiesbaden : Deutscher Universitätsverlag : Imprint: Deutscher Universitätsverlag, 2007.

Language Note:

English

Summary:

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.

Contents:

Preliminary; Introduction; Literature Review; Why M&A fail so often - a comprehensive model; Research Methodology; Research Findings; Conclusions; Back matter

Notes:

Description based upon print version of record.

ISBN:

3-8350-9637-0

OCLC:

244049905