文档介绍：Chapter 7
Acquisition and Restructuring Strategies
Mergers and Acquisitions
Merger
A transaction where two firms agree to integrate their operations on a relatively coequal basis because they have resources and capabilities that together may create a petitive advantage
Acquisition
A transaction where one firm buys another firm with the intent of more effectively using a petence by making the acquired firm a subsidiary within its portfolio of businesses
Takeover
An acquisition where the target firm did not solicit the bid of the acquiring firm
Problems in
Achieving ess
Integration
difficulties
Inadequate
evaluation of target
Too much
diversification
Large or
extraordinary debt
Inability to
achieve synergy
Managers overly
focused on acquisitions
Too large
Increased
market power
e
entry barriers
Lower pared to developing new products
Cost of new
product development
Increased speed
to market
Increased
diversification
Avoid petition
Acquisitions
Reasons for
Acquisitions
Reasons for Acquisitions
Example: Belgian-Dutch Fortis’ acquisition of American Banker’s Insurance Group
Example: Watson Pharmaceuticals’ acquisition of TheraTech
Example: British Petroleum’s acquisition of . Amoco
Increased Market Power
Acquisition intended to reduce petitive balance of the industry
e Barriers to Entry
Acquisitions e costly barriers to entry which may make “start-ups” economically unattractive
Buying established businesses reduces risk of start-up ventures
Lower Cost and Risk of New Product Development
Example: General Electric’s acquisition of NBC
Example: Kraft Food’s acquisition of Boca Burger
Example: CNET’s acquisition of mySimon
Reasons for Acquisitions
Increased Speed to Market
Closely related to Barriers to Entry, allows market entry in a more timely fashion
Diversification
Quick way to move into businesses when firm currently lacks experience and depth in industry
petitive Scope
Firms may use acquisitions to restrict its dependenc