Straub Reasons for Frequent Failure in Mergers and Acquisitions

A Comprehensive Analysis
1. Auflage 2007
ISBN: 978-3-8350-9637-0
Verlag: Deutscher Universitätsverlag
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 227 Seiten, Web PDF

Reihe: Business and Economics

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.

Zielgruppe

Research

Autoren/Hrsg.

Straub, Thomas

Weitere Mitwirkende

Jarillo, Prof. Dr. Dr. José-Carlos

Inhaltsverzeichnis

1;Foreword;6
2;Acknowledgements;8
3;Table of Contents;10
4;List of Figures;12
5;List of Tables;14
6;1 Introduction;16
7;2 Literature Review;29
8;3 Why M&A fail so often - a comprehensive model;77
9;4 Research Methodology;117
10;5 Research Findings;155
11;6 Conclusions;196
12;7 Annex;207
13;8 References;212

Über Autor(innen)

Dr. Thomas Straub ist Professor für Unternehmensführung und Organisation am Fachbereich Wirtschaft und Verwaltung der Fachhochschule Bern