An Analysis of the Managerial Decisions Leading to the Choice of Financing for an Acquisition PDF Download

Author: John M Stark (Jr)
Publisher:
ISBN:
Category :
Languages : en
Pages : 218

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Author: M. P. Narayanan
Publisher: John Wiley & Sons
ISBN: 0787974196
Category : Business & Economics
Languages : en
Pages : 323

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Book Description
Finance for Strategic Decision Making demystifies and clarifies for non-financial executives the basics of financial analysis. It shows how they can make important financial decisions that can critically enhance their institution’s ability to respond to competitive challenges, undertake new projects, overcome financial setbacks, and most importantly, create shareholder value. Written by M. P. Narayanan and Vikram K. Nanda—two of the country’s leading authorities on financial strategy—this book offers a practical guide for using financial analysis to enhance strategicdecision making. The book includes a coherent framework that outlines practical and intellectually sound guidance for executives who must make strategic decisions. Finance for Strategic Decision Making Explains the role of finance in corporate strategy Offers guidance on resource allocation decisions Explores how to determine the right balance of debt and equity capital to maximize firm value Demonstrates how to use payout policy as a strategic tool Clarifies if a merger, acquisition, or divestiture is in the best interest of an organization Shows how to manage risk Reveals how to measure value created and the effectiveness of upper level management

Author: Annika Lorenz
Publisher: Diplomica Verlag
ISBN: 3842859074
Category : Business & Economics
Languages : en
Pages : 139

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Book Description
This book unifies and draws a connection to different concepts of organizational behavior, decision-making theories, psychology and strategy research. Furthermore, it focuses on the theoretical backgrounds of managerial decision-making, different personality concepts and their impact on strategic decisions. Since strategic decisions are made by individuals, it is worth analyzing to what extent personality phenomena such as hubris influence the choice between acquisitions and alliances. In fact, both governance modes are a necessary prerequisite for companies to remain healthy, gain competitive advantages and hence, become world leaders. First, this book provides a literature review of the current research status on governance modes, particularly laying an emphasis on acquisitions and alliances. Moreover, it is explored what hubris actually means, which different facets are underlying and how it is different from other related concepts, such as narcissism, overconfidence, and core self-evaluations. Subsequently, studies having dealt with the concept of hubris in general, hubris in investment decisions and hubris in governance mode decisions in particular are analyzed. Numerous of these studies on strategic and investment decision making have found managers infected with hubris to regularly overpay for acquisitions but none has yet analyzed whether hubristic decision-makers also prefer acquisitions over alliances and which decision making criteria they consider when making such governance choices. Therefore, data from students and executives are collected with the help of a policy-capturing approach - a method used to find out more about individuals’ underlying judgment and information-processing strategies. Moreover, measures to assess personality phenomena are adapted and developed. Thus, this study adds to the growing body of literature on acquisitions vs. alliances by including hitherto neglected personality variables and hence providing a richer explanation for governance decisions. Analyses are conducted with hierarchical linear modeling and logistic regression. This book closes by discussing important results, limitations and implications for both research and management.

Author: Han T. J. Smit
Publisher: Princeton University Press
ISBN: 0691176418
Category : Business & Economics
Languages : en
Pages : 215

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Book Description
A groundbreaking approach to mergers and acquisitions It is widely accepted that a large proportion of acquisition strategies fail to deliver the expected value. Globalizing markets characterized by growing uncertainty, together with the advent of new competitors, are further complicating the task of valuing acquisitions. Too often, managers rely on flawed valuation models or their intuition and experience when making risky investment decisions, exposing their companies to potentially costly pitfalls. Playing at Acquisitions provides managers with a powerful methodology for designing and executing successful acquisition strategies. The book tackles the myriad executive biases that infect decision making at every stage of the acquisition process, and the inadequacy of current valuation approaches to help mitigate these biases and more realistically represent value in uncertain environments. Bringing together the latest advances in behavioral finance, real option valuation, and game theory, this unique playbook explains how to express acquisition strategies as sets of real options, explicitly introducing uncertainty and future optionality into acquisition strategy design. It shows how to incorporate the competitive dynamics that exist in different acquisition contexts, acknowledge and even embrace uncertainty, identify the value of the real options embedded in targets, and more. Rooted in economic theory and featuring numerous real-world case studies, Playing at Acquisitions will enhance the ability of CEOs and their teams to derive value from their acquisition strategies, and is also an ideal resource for researchers and MBAs.

Author: Richard Pike
Publisher: Pearson UK
ISBN: 1292208570
Category : Business & Economics
Languages : en
Pages : 1002

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Book Description
Taking an international perspective to corporate finance, the latest edition of Corporate Finance and Investment is a highly-regarded and established text for students who want to understand the principles of corporate finance and develop the key tools to apply it. The ninth edition has been revised to include topical issues in valuation, working capital, capital structure, the dividend decision, Islamic finance, risk and risk management, and behavioural finance. With its focus on strategic issues of finance in a business setting, this text uses the latest financial and accounting data, articles and research papers to effectively demonstrate how, and to what extent, the theory can be applied to practical issues in corporate finance.

Author: James R. Harvey
Publisher:
ISBN:
Category :
Languages : en
Pages : 268

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Author: Chris f Agar
Publisher: Elsevier
ISBN: 0080476384
Category : Business & Economics
Languages : en
Pages : 444

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Book Description
The requirement to maximise value for shareholders is at the core of any corporate investment or financing decision. The intrinsic value of proposed investments should be assessed before deciding how much capital to allocate; the benefits and risks associated with each available source of finance should be considered when capital is being raised; and capital, and any associated financial risks, should be managed in a way that continues to maximise value. At every stage, an analysis should be carried out to ensure the decision is optimal for shareholders and other capital providers.This book provides practical guidance on the application of financial evaluation techniques and methods (mainly covered in Appendices), as well as comprehensive coverage of traditional corporate finance topics, discussed in the context of capital investment, raising and management and financial risk management (using derivatives). Models, formulae and other quantitative techniques are illustrated in over 100 examples (using only basic mathematics). Topics discussed include the following:* business appraisal using financial ratios* corporate valuation (mainly discounted cash flow and real options)*investment appraisal techniques* acquisition structuring and evaluation* the nature of loans and loan agreements* features and pricing of bonds (straight and convertible)* leasing (including leveraged leasing)* equity raising (Initial Public Offerings)* long and short term capital management* basic pricing of derivatives (forwards, futures, options, swaps)* interest rate and currency risk management using derivativesCapital Investment & Financing provides a comprehensive, in-depth coverage of concepts, methods and techniques involved when evaluating acquisitions and other investments, assessing financing opportunities, and managing capital. The core chapters provide practical guidance on key corporate finance topics; the Appendices contain more quantitative material, focusing on pricing techniques. Examples are used throughout, and an integrated case study (fictional) in the final Appendix uses many of the techniques discussed. *Discusses all key areas of corporate investing and financing, focusing on key financial issues *Concise, thorough and technical, it enables to reader to acquire knowledge effectively *Can be used in everyday analysis and decision making

Author: Ulrich M. Simon
Publisher: GRIN Verlag
ISBN: 3346194787
Category : Business & Economics
Languages : en
Pages : 129

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Book Description
Master's Thesis from the year 2011 in the subject Business economics - Operations Research, European School of Business Reutlingen, language: English, abstract: This thesis investigates the choice of payment method in German M&A. It aims at identifying which determinants are most influential in explaining the choice of payment method in German M&A. The focus, thereby, is on bidder-, acquisition-, and business cycle characteristics. To provide empirical evidence, 207 German acquisitions conducted during January 2003 to December 2010 are closely studied. Mergers and Acquisitions (M&A) are among the most important and influential investment decisions made by a company. Consequently, M&A have attracted immense attention from both academics and professionals. Among the various topics that have been studied in M&A, the method of payment has been the subject of numerous researches both theoretically and empirically. These studies highlight that the method of payment is one of the most critical elements of the M&A process and its choice may well determine both the ability to complete the acquisitions and the future success of the merged entities. The choice of payment method in mergers and acquisitions (M&A) has significant diverse implications for the bidder, the target, and the shareholders of both parties. Therefore, it is driven by distinct factors. This becomes evident when examining the choice of payment method in M&A more closely. Consistent with earlier empirical studies, the logistic regressions'analysis shows that there are several characteristics that affect the choice of payment method. Particularly, the findings suggest that the characteristics of the bidder are most influential in determining the payment method for German M&A. That is to say, the larger a bidder’s total assets, a bidder’s cash holdings, and the relative size of the bidder to the target, the higher the probability of cash payments in German M&A. On the contrary, the higher a bidder’s leverage ratio and the higher a bidder’s tangible assets, the more likely share payments are employed. In addition, a rising stock market index also indicates a higher probability of cash payment in German M&A. Overall, the findings of this paper corroborate common theories and empirical studies. However, similar to other studies on the choice of payment method the analysis shows inconsistent results for some characteristics. This can be partly explained by country-specific characteristics. However, it can also be justified by the selection of the samples, the time, and the undertaking of the study.

Author: Marc Zajicek
Publisher:
ISBN: 9783838675756
Category :
Languages : en
Pages : 80

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Author: Richard Pike
Publisher: Pearson Education
ISBN: 9780273695615
Category : Capital investments
Languages : en
Pages : 790

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Book Description
This text has a practical orientation with a wealth of examples and case studies. Recommended by the CIMA and ACCA, it includes new material on derivatives, treasury management and restructuring.