Description
Table of ContentsContentsPrefacePART 1. UNCOVERING THE RULES OF THE GAME1. Introduction: The Acquisition Game
The M&A Phenomenon
Back to First Principles: The Acquisition Game
A Brief History of the Research on Acquisitions
2. Can You Run Harder? Synergy
Synergy and the Acquisition Game
The Performance Requirements of Pre-Acquisition Market Values
The Competitive Challenge of Synergy
The Cornerstones of Synergy
Predictable Overpayment
3. Do You Feel Lucky? The Acquisition Premium
The Synergy Concept: Expectations versus Realizations
The Resource Allocation Decision: An Introduction
Required Performance Improvements: A Simulation Approach
The Seductiveness of Financial Valuation Models
4. Tools and Lessons for the Acquisition Game
Prior Expectations and Additional Resource Requirements
Competitors
Time, Value, and the Premium
PART 2. AN ANALYSIS OF CORPORATE ACQUISITION STRATEGIES5. Acquirer Performance and Risk Taking
Corporate Acquisitions as a Strategy for Value Creation
Acquisition Premiums
Strategic Relatedness of Acquisitions
Method of Payment
The Performance Effects of Mergers versus Tender Offers
Relative Size of the Acquisition
Managerial Risk Taking Following Acquisition
6. Methodology
Sample
Acquiring Firm Performance
Independent Variables
Changes in Risk Taking Following Acquisition
Empirical Techniques
7. Discussion of Results
Aggregate Results on Acquisitions
Traditional Tests and Replications of Evidence on Relatedness
Testing the Acquiring Firm Performance Model
Tests for Changes in Risk Taking
8. Implications of the Analysis
Theoretical Contributions
Public Policy Implications
Practical Implications
Appendix A: Review and Critique of Prior Research on Mergers and Acquisitions
Appendix B: Detailed Results of the Analysis in Part 2
Appendix C: Sample and Descriptions of Targets and Acquirers
Used in the Analysis
Notes
Bibliography
Index
About the Author
