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Related Flashcards
Cards In This Set
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Merger and acquisitions
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Source of firm growth and above-average returns and of negative results as well
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Mergers and acquisitions
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Heavily influenced by external environment- tight credit markets & political changes in foreign countries' orientation toward M&A
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M&A
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Firms are supposed to use _____ strategies to create value for all stakeholders
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Cross-border acquisitions
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Heighten during currency imbalances, from strong currency countries to weaker currency countries
can sometimes be your strongest reason for M&A |
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Business level, corporate level, international and cooperative strategies
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M&A value creation applies equally across
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Increase firm's strategic competitiveness and value
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Intent of M&A activitiy
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Zero
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Historically returns of M&A activities are close to _____ so rarely works as planned
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Winners curse
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Get people bidding against each other and price goes higher and higher so whoever actually wins actually curses themselves for over paying
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Acquired
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Shareholders of _____ frims often earn above average returns from acquisitions
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Acquiring
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Shareholders of _________ firms earn returns taht are close to zero
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2/3
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In _____ of all acquisitions, the acquiring firm's stcok price fell immediately after the intended transaction was announced
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Synergies
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The negative response reflects investors' skepticism about projected ______ being captured
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Merger
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Two firms agree to integrate their operations on a relatively co-equal basis
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Market share, size or asset value
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There are few true mergers because one firm usually dominates in terms of
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Acquisitions
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One firm buys a controlling, 100% interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio
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