Mergers & Acquisitions A Guide to Creating Value for Stakeholders

by Hitt, Michael A.; Harrison, Jeffrey S.; Ireland, R. Duane

• ISBN13: 9780195112856
• ISBN10: 0195112857
• Format: Hardcover
• Copyright: 2001-03-22
• Publisher: Oxford University Press

Summary

In 1999, MCI WorldComm and Sprint agreed to merge. Valued at $129 billion, this expected transaction was the largest in history. However, it fell victim to regulators in Europe concerned with the potential monopoly power of the merged firm. This MandA action was merely the latest in agrowing trend of "blockbuster" mergers over the past several years. Once a phenomenon seen primarily in the United States, mergers and acquisitions are increasingly being pursued across national boundaries. In short, acquisition strategies are among the most important corporate-level strategies inthe new millennium. The need for clear, complete, and up-to-date guide to successful mergers and acquisitions had never been greater. This book more than fills that need. Looking at successful--and unsuccessful--mergers and acquisitions in a number of different industries, Mergers and Acquisitions: A Guide to Creating Value explains how to conduct an acquisition and how to avoid pitfalls that have doomed many such ventures.The authors take the reader step-by-step through the process, starting with the elements of a successful merger, due diligence to ensure that the target firm is sound and fits well with the acquiring firm, and how mergers and acquisitions are financed. They move on to explore how firms findpartners/targets for acquisitions that have complementary resources and how to find partners with which integration and synergy can be achieved. Finally, they discuss the potential hazards found in MandA's and how to avoid them, how to conduct successful cross-border acquisitions, and how to ensurethat ethical principles aren't breached during the process. Based on 15 years of research, this essential guide goes beyond specific case studies to cover all aspects of these ventures, making it required reading for all managers seeking to build a successful strategy.

Author Biography

Michael A. Hitt holds the Weatherup/Overby Chair of Executive Leadership at Arizona State University. He is co-author, with Richard E. Hoskisson, of Downscoping: How to Tame the Diversified Firm (OUP 1994).
Jeffrey S. Harrison is Professor of Management in the College of Business Administration at the University of Central Florida.
R. Duane Ireland holds the W. David Robbins Chair of Business Policy in the E. Claiborne Robins School of Business at the University of Richmond. Along with Mike Hitt and Richard Hoskisson, he is co-author of Strategic Management: Competitiveness and Globalization.

Table of Contents

Preface	ix
The World of Mergers and Acquisitions	3	(14)
Exercising Due Diligence	17	(14)
Financing an Acquisition	31	(16)
Looking for Complementary Resources	47	(18)
Seeking a Friendly and Cooperative Merger	65	(16)
Achieving Integration and Synergy	81	(22)
Learning from Experience	103	(12)
Avoiding the Hazards of Diversification	115	(14)
Deciding If Innovation Can Be Acquired Successfully	129	(14)
Acquiring or Merging Across Borders	143	(18)
Taking an Ethical Approach to Mergers and Acquisitions	161	(16)
Beating the Odds in the M&A Game	177	(12)
Notes	189	(30)
Index	219