Performance Measurement of Acquisitions and Acquisition Series

Performance Measurement of Acquisitions and Acquisition Series
Author: Jens Engelhardt
Publisher:
Total Pages:
Release: 2006
Genre:
ISBN:

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"The profitability of merger and acquisition (M&A) activity has generated a small mountain of research over the past 20 years" (Bruner, 2002: 48). This 'small mountain' uses a variety of measures to determine acquisition success - with more than ambiguous results. This thesis adds to this discussion from a different perspective: practitioners were asked to illustrate their approach to measuring acquisition performance. Drawing from a survey of 24 very active acquirers, this thesis generates two main findings. First, it reviews the various criteria used to measure acquisition performance and presents manager's assessment of each of them. Findings indicate that accounting-based measures and non-financial criteria are significantly more important than those of a stock market nature. This contradicts most academic approaches that favor stock market-related measurement (in most cases using abnormal returns). In addition, the mutual relatedness of the criteria is discussed. Second, the thesis identifies companies that have pursued or are currently pursuing an acquisition program, defined as the acquisition of several mutually related targets. Five of these companies are introduced in more detail, as are the characteristics of their respective acquisition program. I also elaborate on the performance measurement of these programs. A five-dimensional framework is used to compare the performance measurement of the case study companies. Results show that acquisition programs have existed for quite a while. Only one major difference could be found to the measurement of single acquisitions: due to their larger relative size, acquisition programs have a more significant potential impact on the company's stock price and, as such, are more carefully watched by analysts and shareholders. Hence, stock market-oriented criteria seem to be more meaningful than for single acquisitions.

Evaluating Companies for Mergers and Acquisitions

Evaluating Companies for Mergers and Acquisitions
Author: Pervez Ghauri
Publisher: Emerald Group Publishing
Total Pages: 198
Release: 2014-06-04
Genre: Business & Economics
ISBN: 1783506210

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This volume in the IBM series investigates how the evaluation of a target firm influence the outcome of mergers and acquisitions (M&As). Co-authored by international business expert Pervez Ghauri, it highlights the processes that evaluate potential acquisition targets, and how a proper evaluation can positively influence the M&A performance.

The Measurement of Operating Performance Following Corporate Acquisitions

The Measurement of Operating Performance Following Corporate Acquisitions
Author: Allan Eberhart
Publisher:
Total Pages:
Release: 2012
Genre:
ISBN:

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We examine a sample of 1,175 firms following their acquisition of another firm. Consistent with previous work, we measure the operating performance of these firms in event-time, and find that they experience significantly positive abnormal operating performance subsequent to their acquisition. When we measure their abnormal operating performance in calendar-time, however, we find that our sample firms' abnormal operating performance is insignificant. In short, we find that the standard event-time measures of abnormal operating performance overstate the benefits of corporate acquisitions.

Mergers and Acquisitions

Mergers and Acquisitions
Author: David R. King
Publisher: Routledge
Total Pages: 158
Release: 2018-10-30
Genre: Business & Economics
ISBN: 042989080X

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The process of identifying and evaluating a target firm, completing a deal after its negotiation and announcement, and then integrating a target firm after legal combination is a multi-year process with uncertain returns to acquiring firms. Research on mergers and acquisitions (M&As) is progressing rapidly yet it remains fragmented across multiple research perspectives that largely examine different acquisition phases separately and coincide with a focus on different research variables. As a result, research fragmentation means that a researcher in one area may be unaware of research from related areas that is likely relevant. This contributes to research silos with M&A research displaying different traditions, starting points, and assumptions. Mergers and Acquisitions: A Research Overview summarizes the frontier in M&A research and provides insights into where it can be expanded. It undertakes the needed integration and reconciliation of research in order to derive practical knowledge for managing acquisitions from beginning to end, providing a summary of what is known and its implications for future research. This concise overview reconciles and integrates the state of the art in our understanding of mergers and acquisitions, providing an essential first stopping point in the research journey of students and scholars working in this area.

The Handbook of Mergers and Acquisitions

The Handbook of Mergers and Acquisitions
Author: David Faulkner
Publisher: Oxford University Press, USA
Total Pages: 773
Release: 2012-06-07
Genre: Business & Economics
ISBN: 0199601461

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The Handbook bridges hitherto separate disciplines engaged in research in mergers and acquisitions (M&A) to integrate strategic, financial, socio-cultural, and sectoral approaches to the field. It examines the management processes involved, as well as valuations and post-acquisition performance, and considers international and sectoral dimensions.

Mergers and Acquisitions

Mergers and Acquisitions
Author: Olimpia Meglio
Publisher: Springer Nature
Total Pages: 223
Release: 2020-03-07
Genre: Business & Economics
ISBN: 3030404595

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This book provides scholars and practitioners in mergers and acquisitions (M&As) with a solid foundation for further research. M&As continue to shape the economic landscape across the globe. While there is already a huge body of scholarly work on the subject, findings appear contradictory and academics and practitioners often struggle to understand what factors make M&As successful. Due to the lack of an agreed-upon definition, research findings appear contradictory, while in fact they are often simply not comparable. To address this, the book rethinks how we measure key umbrella constructs. It specifically focuses on the conceptualization phase of the measurement process, often taken for granted in the current research.

The Complete Guide to Mergers and Acquisitions

The Complete Guide to Mergers and Acquisitions
Author: Timothy J. Galpin
Publisher: John Wiley & Sons
Total Pages: 484
Release: 2014-07-21
Genre: Business & Economics
ISBN: 1118827236

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Ease the M&A process with a more effective integration plan The Complete Guide to Mergers and Acquisitions is the ultimate handbook for planning and managing post-merger integration. Packed full of "how to" guidance, tools, templates and resources that have been put to the test on numerous due diligence and integration efforts around the world, The Complete Guide to Mergers and Acquisitions has been the go-to guide for firms seeking to maximize the value of their deals since the release of the first edition in 1999. Poor integration management virtually ensures that a merger or acquisition will fail to meet financial and strategic goals. The Complete Guide to Mergers and Acquisitions provides the information that enables firms to quickly and prudently capture projected cost and revenue synergies, and to move the combined organization forward. The book addresses strategic deal considerations, due diligence, integration management, people dynamics and cultural integration, common integration mistakes, communications strategies, and provides actionable steps toward creating measurable, positive results throughout the integration process. The updated third edition contains new information and tools to help firms in any industry manage deals of all sizes, including: Results of The State of M&A Integration Effectiveness Survey, 2014 A new chapter on the M&A process deal stages, with an expanded Deal Flow Model Findings of substantial M&A research from various studies in multiple industries and organizations, supporting the concepts presented throughout the book New and revised tools and templates for due diligence, integration, and results measurement and reporting New case examples of recent transactions Highlighted 'Key Principles' throughout each chapter A summary of key points at the end of each chapter Discussion questions addressing the key themes of each chapter A 'rapid assessment' diagnostic regarding the key elements of each chapter, which can be completed for any organization A revised chapter on taking your M&A game to the next level – essential requirements for building M&A capabilities into a consistently successful enterprise competency Merger and acquisition activity across the globe continues to grow, and is also playing a major role in the development of expanding markets. A well-managed integration effort is essential to success, and failure means a tremendous waste in terms of time and money, as well as the rapid destruction of shareholder value. The Complete Guide to Mergers and Acquisitions: Process Tools to Support M&A Integration at Every Level, Third Edition is an invaluable resource to guide firms in managing M&A integration and maximize the value of their deals.

Financial Analysis of Mergers and Acquisitions

Financial Analysis of Mergers and Acquisitions
Author: Eli Amir
Publisher: Springer Nature
Total Pages: 304
Release: 2021-02-02
Genre: Business & Economics
ISBN: 3030617696

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Mergers and acquisitions (M&As) reshape the corporate landscape helping companies expand market share and gain a strategic advantage. The ability to understand and analyze these transactions is a crucial skill. The first step in acquiring that skill is being able to gather and analyse information on M&As from public sources, such as financial statements. This textbook helps its readers better analyze M&A transactions using information provided in financial statements. Covering accounting and reporting of consolidations, goodwill, non-controlling interests, step acquisitions, spin-offs, equity carve-outs, joint ventures, leveraged buyouts, disposal of subsidiaries, special purpose entities, and taxes, it focuses on the link between underlying economic events and the information in financial statements and how this link affects the assessment of corporate performance. The first part of the book provides description of the accounting rules governing M&A transactions, while the second part includes cases of M&A transactions. Each case focuses on a different element of an M&A transaction, and it is followed by a detailed solution with a complete analysis. Unlike other books in this field, this textbook focuses exclusively on accounting and financial analysis for graduate and upper undergraduate level courses in financial analysis, corporate finance, and financial accounting.

Performance Measurement in Defense Acquisitions

Performance Measurement in Defense Acquisitions
Author: Terry F. Buss
Publisher:
Total Pages:
Release: 2005
Genre:
ISBN:

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The federal government is becoming increasingly "corporate" and, consequently, business-like operations are now more prevalent than ever. Part of the mandate to "act like a business" is a need to develop strategic plans and goals, which require metrics to quantify what is to be attained. In this environment, an effective performance-management program is essential to success. The ASN (RD & & A) has updated its strategic plan in support of the DoD's efforts to transform the military based on these environmental changes. Its efforts to implement a revised performance-management program in support of its revised plan offer potential insights into performance measurement in defense acquisitions.

Advances in Mergers and Acquisitions

Advances in Mergers and Acquisitions
Author: Sydney Finkelstein
Publisher: Emerald Group Publishing
Total Pages: 225
Release: 2010-12-20
Genre: Business & Economics
ISBN: 0857244655

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Helps scholars think about mergers and acquisitions in new ways, building our knowledge base on this critical topic. This book focuses on all three characteristics that make up this research field - studies from scholars in different countries, with different research questions, and relying on different theoretical perspectives.