{"product_id":"maximizing-corporate-value-through-mergers-and-acquisitions-a-strategic-growth-guide-hardback-9781118108741","title":"Maximizing Corporate Value through Mergers and Acquisitions; A Strategic Growth Guide (Hardback) 9781118108741","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eMaximizing Corporate Value through Mergers and Acquisitions\u003c\/font\u003e\u003cbr\u003e\r\n\u003cfont size=\"5\"\u003eA Strategic Growth Guide\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\u003cp\u003e\u003cfont size=\"4\"\u003ePatrick A. Gaughan (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9781118108741, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 17 May 2013\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e352 pages\u003cbr\u003e23.6 x 16 x 3 cm, 0.54 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cb\u003eSolid guidance for selecting the correct strategic basis for mergers and acquisitions\u003c\/b\u003e  \u003cp\u003eExamining how M\u0026amp;A fits in corporate growth strategies, \u003ci\u003eMaximizing Corporate Value through Mergers and Acquisitions\u003c\/i\u003e covers the various strategic reasons for companies entering mergers and acquisitions (M\u0026amp;A), with a look at those that are based on sound strategy, and those that are not.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eHelps companies decide whether M\u0026amp;As should be used for growth and increased corporate value\u003c\/li\u003e \u003cli\u003eExplores why M\u0026amp;A deals often fail to deliver what their proponents have represented they would\u003c\/li\u003e \u003cli\u003eExplains which types of M\u0026amp;A work best and which to avoid\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWith insider guidance on what boards of directors should be aware of when evaluating proposed deals, \u003ci\u003eMaximizing Corporate Value through Mergers and Acquisitions\u003c\/i\u003e provides a sound foundation for understanding the risks involved in any mergers and acquisitions deal, before it's too late.\u003c\/p\u003e\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Merger Growth Strategy 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStrategy and M\u0026amp;A 2\u003c\/p\u003e \u003cp\u003eIntroduction to M\u0026amp;A 4\u003c\/p\u003e \u003cp\u003eBackground and Terminology 5\u003c\/p\u003e \u003cp\u003eHostile Takeovers 5\u003c\/p\u003e \u003cp\u003eTakeover Defense 8\u003c\/p\u003e \u003cp\u003eLeveraged Transactions 10\u003c\/p\u003e \u003cp\u003eRestructurings 12\u003c\/p\u003e \u003cp\u003eTrends in Mergers 14\u003c\/p\u003e \u003cp\u003eNotes 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Growth through Mergers and Acquisitions 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIs Growth or Increased Return the More Appropriate Goal? The Case of Hewlett-Packard 21\u003c\/p\u003e \u003cp\u003eM\u0026amp;A Must Fit the Strategy—Not the Other Way Around 24\u003c\/p\u003e \u003cp\u003eStrategy Should Not Be Just M\u0026amp;A 25\u003c\/p\u003e \u003cp\u003eOrganic Growth or Growth through M\u0026amp;A 25\u003c\/p\u003e \u003cp\u003eAcquisition and Development versus Research and Development 26\u003c\/p\u003e \u003cp\u003eCan M\u0026amp;A Be Effectively Used to Buy Growth? 30\u003c\/p\u003e \u003cp\u003eSuccess in Core Business Does Not Always Translate to Success with M\u0026amp;A Strategy: Focus on Microsoft 31\u003c\/p\u003e \u003cp\u003eGrowth through Bolt-On Acquisitions 31\u003c\/p\u003e \u003cp\u003eKnowing When to Exit a Business 35\u003c\/p\u003e \u003cp\u003eFrom Growth through M\u0026amp;A to Growth through Organic Expansion 36\u003c\/p\u003e \u003cp\u003eControlling the Runaway Dealmaker CEO 38\u003c\/p\u003e \u003cp\u003eUsing M\u0026amp;A to Achieve Growth in a Slow-Growth Industry 40\u003c\/p\u003e \u003cp\u003eSqueezing Out Growth in a Slow-Growth Industry Using Multiple Options 40\u003c\/p\u003e \u003cp\u003eDealing with a Slow-Growth Business and Industry 42\u003c\/p\u003e \u003cp\u003eGeographical Expansion through M\u0026amp;A 46\u003c\/p\u003e \u003cp\u003eInternational Growth and Cross-Border Acquisitions 47\u003c\/p\u003e \u003cp\u003eTaking Advantage of Currency Fluctuations to Pursue High-Growth M\u0026amp;A 47\u003c\/p\u003e \u003cp\u003eFinding Growth in High-Growth Markets 49\u003c\/p\u003e \u003cp\u003eCyclical Companies Achieving Growth in Recessed Markets 50\u003c\/p\u003e \u003cp\u003eNotes 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Synergy 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Synergy in the Context of M\u0026amp;A? 53\u003c\/p\u003e \u003cp\u003eAchievement of Synergy: A Probabilistic Event 55\u003c\/p\u003e \u003cp\u003eTypes of Synergy 58\u003c\/p\u003e \u003cp\u003eIndustries’ Pursuit of Cost Economies 65\u003c\/p\u003e \u003cp\u003eResearch on Operating Economies in M\u0026amp;A 69\u003c\/p\u003e \u003cp\u003eEconomies of Scope 70\u003c\/p\u003e \u003cp\u003eScope Economies and the One-Stop Shop 72\u003c\/p\u003e \u003cp\u003eCopycat Following of Another Firm’s Foolish M\u0026amp;A Strategy 74\u003c\/p\u003e \u003cp\u003eCost Economies in Banking Mergers: United States versus Europe 75\u003c\/p\u003e \u003cp\u003eInternationalization Theory of Synergy and Information-Based Assets 79\u003c\/p\u003e \u003cp\u003eNotes 89\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Diversification 91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDiversifying M\u0026amp;A in the Conglomerate Era 91\u003c\/p\u003e \u003cp\u003eModern-Day U.S. Conglomerates 92\u003c\/p\u003e \u003cp\u003ePortfolios of Companies 95\u003c\/p\u003e \u003cp\u003eTheoretical Basis for Diversification 98\u003c\/p\u003e \u003cp\u003eApplying Portfolio Theory to Conglomerates? 99\u003c\/p\u003e \u003cp\u003eDiversification and the Acquisition of Leading Industry Positions 100\u003c\/p\u003e \u003cp\u003eAchieving a Number One or Two Ranking Is Not a Panacea 102\u003c\/p\u003e \u003cp\u003eDiversification to Enter More Profitable Industries 102\u003c\/p\u003e \u003cp\u003eEmpirical Evidence on Diversification 103\u003c\/p\u003e \u003cp\u003eEmpirical Evidence on the Acquisition Programs of the 1960s 103\u003c\/p\u003e \u003cp\u003eHow Likely Is It That Diversifying Acquisitions Will End Up Being Sold Off? 104\u003c\/p\u003e \u003cp\u003eIs There a Diversification Discount? 105\u003c\/p\u003e \u003cp\u003eFocus Hypothesis 106\u003c\/p\u003e \u003cp\u003eTypes of Focus Increases 106\u003c\/p\u003e \u003cp\u003eFocus-Increasing Asset Sales Raise Value 107\u003c\/p\u003e \u003cp\u003eExplanation for the Diversification Discount 107\u003c\/p\u003e \u003cp\u003eRelated versus Unrelated Diversification 108\u003c\/p\u003e \u003cp\u003eWhy Are Very Diversified Companies Allowed to Form? Beware of the Empire Builders 111\u003c\/p\u003e \u003cp\u003eDo Managerial Agendas Drive M\u0026amp;A? 113\u003c\/p\u003e \u003cp\u003eNotes 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Horizontal Integration and M\u0026amp;A 117\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAdvantages of Holding the One and Two Position in the Industry 117\u003c\/p\u003e \u003cp\u003eBenefits of Size: Spotlight on the Mobile Telecommunications Industry 119\u003c\/p\u003e \u003cp\u003eMotivation to Increase Size 122\u003c\/p\u003e \u003cp\u003eCompetitive Pressures of Competitors’ M\u0026amp;A Program 122\u003c\/p\u003e \u003cp\u003eHorizontal Deals: Acquisitions of Competitors and Their Competing Brands 124\u003c\/p\u003e \u003cp\u003eSprint–Nextel Horizontal Deal: One of the Worst in M\u0026amp;A History 125\u003c\/p\u003e \u003cp\u003eDeclining Industry Demand Necessitating Industry Consolidation 128\u003c\/p\u003e \u003cp\u003eSynergistic Gains and Horizontal M\u0026amp;A 129\u003c\/p\u003e \u003cp\u003eNet Benefits of Horizontal Deals = Synergistic Gains – (Easy to Measure Costs + Hard to Measure Costs) 133\u003c\/p\u003e \u003cp\u003eHorizontal Merger Success, Target’s Size, and Post-M\u0026amp;A Integration Costs 134\u003c\/p\u003e \u003cp\u003eMergers of Equals 136\u003c\/p\u003e \u003cp\u003eMergers of Equals and Challenges of Integration 137\u003c\/p\u003e \u003cp\u003eMergers-of-Equals Research: Acquirers versus Target Gains 139\u003c\/p\u003e \u003cp\u003eCompetitive Advantages of Horizontal Deals: Case Study—InBev and Anheuser-Busch 139\u003c\/p\u003e \u003cp\u003eRegulatory Concerns on Merger Integration 141\u003c\/p\u003e \u003cp\u003eHorizontal M\u0026amp;A and Market Power: An Economic Perspective 143\u003c\/p\u003e \u003cp\u003eEmpirical Evidence on Whether Firms Pursue M\u0026amp;A to Achieve Market Power 145\u003c\/p\u003e \u003cp\u003eCountervailing Power, Industry Concentration, and M\u0026amp;A 147\u003c\/p\u003e \u003cp\u003eHorizontal Integration, Consolidation, and Roll-Up Acquisition Programs 155\u003c\/p\u003e \u003cp\u003eNotes 156\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Vertical Integration 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBenefits of Vertical Integration 159\u003c\/p\u003e \u003cp\u003eRisk and Vertical Integration 159\u003c\/p\u003e \u003cp\u003eVertical Integration as a Path to Global Growth 160\u003c\/p\u003e \u003cp\u003eHow Owning Your Own Supplier Can Be a Competitive Disadvantage 163\u003c\/p\u003e \u003cp\u003eVertical Integration as a Natural Outgrowth of a Business 165\u003c\/p\u003e \u003cp\u003eVertical Integration: A Growth Strategy? 168\u003c\/p\u003e \u003cp\u003eContinually Reevaluating a Vertical Integration Strategy 173\u003c\/p\u003e \u003cp\u003eRegulation of Vertical Integration 176\u003c\/p\u003e \u003cp\u003eCopycat Vertical Integration 177\u003c\/p\u003e \u003cp\u003eNote 178\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Growth through Emerging Market M\u0026amp;A 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEconomic Condition of Major Economies in the Postsubprime World 180\u003c\/p\u003e \u003cp\u003eLow-Growth Markets’ Diminishing Returns 181\u003c\/p\u003e \u003cp\u003eRole of Demographics 182\u003c\/p\u003e \u003cp\u003eThe Next 11 183\u003c\/p\u003e \u003cp\u003eM\u0026amp;A Is Not Always the Best Way of Accessing High-Growth Markets 184\u003c\/p\u003e \u003cp\u003eHigh-Growth Regions and Countries 185\u003c\/p\u003e \u003cp\u003eRisks of Emerging Markets 208\u003c\/p\u003e \u003cp\u003eEntering Large Slow-Growth Markets Instead of Fast-Growth Emerging Markets 210\u003c\/p\u003e \u003cp\u003eReducing Country M\u0026amp;A Risk: Investing in Local Companies That Engage in Substantial Emerging Market M\u0026amp;A 211\u003c\/p\u003e \u003cp\u003eFinding Growth in High-Growth Markets 213\u003c\/p\u003e \u003cp\u003eEmerging Market Acquirer 216\u003c\/p\u003e \u003cp\u003eChina and Its Emerging Market Acquirers 218\u003c\/p\u003e \u003cp\u003eNotes 220\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Joint Ventures and Strategic Alliances as M\u0026amp;A Alternatives 221\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eContracts versus Joint Ventures 222\u003c\/p\u003e \u003cp\u003ePotential Problems with Joint Ventures and Strategic Alliances 222\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Joint Ventures 224\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects by Type of Venture 225\u003c\/p\u003e \u003cp\u003eRelatedness and Size 226\u003c\/p\u003e \u003cp\u003eMarket’s Assessment of Risk of Joint Ventures 227\u003c\/p\u003e \u003cp\u003eStrategic Alliances 227\u003c\/p\u003e \u003cp\u003eStrategic Alliance Process 228\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Strategic Alliances 229\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects by Type of Alliance 229\u003c\/p\u003e \u003cp\u003eNotes 230\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Role of Corporate Governance in M\u0026amp;A 233\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAgency Cost Problem 233\u003c\/p\u003e \u003cp\u003eCEO Compensation and Agency Costs 235\u003c\/p\u003e \u003cp\u003eDo Shareholders Get Value for the High Compensation Paid to U.s. Ceos? 237\u003c\/p\u003e \u003cp\u003eBoard Characteristics and CEO Compensation 238\u003c\/p\u003e \u003cp\u003eBenchmarking and How Boards Determine CEO Compensation 239\u003c\/p\u003e \u003cp\u003eAre the High Paid Superstar CEOs Simply Worth the Money? Not 240\u003c\/p\u003e \u003cp\u003eAre CEOs Paid for Luck? 241\u003c\/p\u003e \u003cp\u003eCEO Compensation and M\u0026amp;A Programs 241\u003c\/p\u003e \u003cp\u003eDo Boards Pay CEOs for Doing M\u0026amp;A? 241\u003c\/p\u003e \u003cp\u003eDo Boards Punish CEOs for Doing Bad M\u0026amp;As? Case of Rio Tinto 242\u003c\/p\u003e \u003cp\u003eGolden Parachutes and M\u0026amp;A 243\u003c\/p\u003e \u003cp\u003eCEO Severance Payments 243\u003c\/p\u003e \u003cp\u003eAre CEOs Evaluating M\u0026amp;A by Thinking, “What’s in It for Me?” 244\u003c\/p\u003e \u003cp\u003eCEO Overconfidence and M\u0026amp;A 244\u003c\/p\u003e \u003cp\u003eAre Overconfident CEOs Good for Anything? 245\u003c\/p\u003e \u003cp\u003eManagement Compensation and Post-Acquisition Performance 245\u003c\/p\u003e \u003cp\u003eRole of the Board of Directors 246\u003c\/p\u003e \u003cp\u003eCEO Tenure, Board Composition, and the Disciplinary Effects of Takeovers 257\u003c\/p\u003e \u003cp\u003eAntitakeover Measures 257\u003c\/p\u003e \u003cp\u003eCorporate Governance and the Divestiture Decision 259\u003c\/p\u003e \u003cp\u003eNotes 259\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Downsizing: Reversing the Error 263\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAnalyzing the Strategic Fit of a Business Unit 266\u003c\/p\u003e \u003cp\u003eMarket Conditions 267\u003c\/p\u003e \u003cp\u003eRegulatory Concerns 267\u003c\/p\u003e \u003cp\u003eDivestiture Likelihood and Prior Acquisitions 267\u003c\/p\u003e \u003cp\u003eAnother Option: Equity Carve Out 268\u003c\/p\u003e \u003cp\u003eAnother Option: Spinoff 269\u003c\/p\u003e \u003cp\u003eSpinoff or Equity Carve Out: Which Option Is Better? 270\u003c\/p\u003e \u003cp\u003eAnother Option: Split-Off 272\u003c\/p\u003e \u003cp\u003eTax Effects 272\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Selloffs 272\u003c\/p\u003e \u003cp\u003eRound Trip Wealth Effects 274\u003c\/p\u003e \u003cp\u003eSpinoffs as a Means of Increasing Focus 274\u003c\/p\u003e \u003cp\u003eDifferences in Types of Focus Increases 275\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Spinoffs: United States versus Europe 278\u003c\/p\u003e \u003cp\u003eCorporate Governance and Selloffs 279\u003c\/p\u003e \u003cp\u003eManagerial Ownership and Selloff Gains 280\u003c\/p\u003e \u003cp\u003eActivists and Selloffs 280\u003c\/p\u003e \u003cp\u003eMarket Liquidity and the Decision to Sell a Unit 280\u003c\/p\u003e \u003cp\u003eInvoluntary Selloffs 281\u003c\/p\u003e \u003cp\u003eVoluntary\/Involuntary Selloffs 281\u003c\/p\u003e \u003cp\u003eVoluntary Defensive Selloffs 282\u003c\/p\u003e \u003cp\u003eTracking Stocks 283\u003c\/p\u003e \u003cp\u003eMore Drastic Solutions: Voluntary Bust-Ups 285\u003c\/p\u003e \u003cp\u003eRecent Major Exceptions to Positive Shareholder Wealth Effects of Selloffs 286\u003c\/p\u003e \u003cp\u003eNotes 289\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Valuation and Merger Strategy 291\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial versus Nonfinancial Buyers 291\u003c\/p\u003e \u003cp\u003eTarget and Bidder Valuation Effects 293\u003c\/p\u003e \u003cp\u003eWhat Types of Acquiring Firms Tend to Perform the Poorest? 295\u003c\/p\u003e \u003cp\u003ePremiums 295\u003c\/p\u003e \u003cp\u003eHistorical Trends in Merger Premiums 296\u003c\/p\u003e \u003cp\u003eStock Market Activity and Merger Premiums 297\u003c\/p\u003e \u003cp\u003eStock Market–Driven Acquisitions 298\u003c\/p\u003e \u003cp\u003eDeterminants of Acquisition Premiums 298\u003c\/p\u003e \u003cp\u003ePremiums from Strategic Mergers 298\u003c\/p\u003e \u003cp\u003eHubris and Merger Premiums 299\u003c\/p\u003e \u003cp\u003eEarly Research 300\u003c\/p\u003e \u003cp\u003eLater Research 300\u003c\/p\u003e \u003cp\u003eWinner’s Curse Hypothesis of Takeovers 301\u003c\/p\u003e \u003cp\u003eCampeau’s Mega-Bust 302\u003c\/p\u003e \u003cp\u003eResearch on Winner’s Curse of Takeover Contests 304\u003c\/p\u003e \u003cp\u003eMarket Performance, Valuation, and Takeover Probability 304\u003c\/p\u003e \u003cp\u003eDeal Size and Shareholder Wealth 305\u003c\/p\u003e \u003cp\u003eValuation Analysis and Source of the Flaws in Bad Deals 306\u003c\/p\u003e \u003cp\u003eComments of the Residual Value 308\u003c\/p\u003e \u003cp\u003eFree Cash Flows 308\u003c\/p\u003e \u003cp\u003eCost Cutting and Historical Free Cash Flows 309\u003c\/p\u003e \u003cp\u003eGrowth Rate for Projection 310\u003c\/p\u003e \u003cp\u003eCapitalization Rates and the Exit Multiple 310\u003c\/p\u003e \u003cp\u003eDiscount Rate 311\u003c\/p\u003e \u003cp\u003eWhose Capital Costs Are We Measuring? 313\u003c\/p\u003e \u003cp\u003eUsing the Build-Up Method 313\u003c\/p\u003e \u003cp\u003eShort-Term Interest Rate Trends 315\u003c\/p\u003e \u003cp\u003eUsing Comparables 316\u003c\/p\u003e \u003cp\u003ePublic versus Private Acquirers 316\u003c\/p\u003e \u003cp\u003ePublic versus Private Sellers 318\u003c\/p\u003e \u003cp\u003eNotes 321\u003c\/p\u003e \u003cp\u003eAbout the Author 325\u003c\/p\u003e \u003cp\u003eIndex 327\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance \u0026amp; accounting [\u003ca title=\"See our other books on Finance \u0026amp; accounting\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20\u0026amp;%20accounting%20%5BKF%5D%22\"\u003eKF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52417752563992,"sku":"9781118108741","price":45.47,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9781118108741.jpg?v=1784506655","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/maximizing-corporate-value-through-mergers-and-acquisitions-a-strategic-growth-guide-hardback-9781118108741","provider":"Freshly Printed Books","version":"1.0","type":"link"}