Impact of Cross-Border Acquisition on Financial Performance and Strategic Outcome of Acquiring Companies PDF Download

Author: Ishrat Rasool
Publisher:
ISBN:
Category :
Languages : en
Pages : 14

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Book Description
Cross-border and domestic merger and acquisitions are considered as fastest means of growth and survival too. This study provides evidence on the value creation by applying inorganic growth strategies based on a sample of Indian pharmaceutical companies. Relying on the key financial ratios, their pre-merger and post-merger financial performances were compared to find whether merger has affected their performance. Based on these multiple financial ratios it has been noted that there was no improvement found in the profitability after merger. The main motives of the mergers and acquisitions like cost reduction, risk spreading etc were compared to the financial results which indicates that the overall motives more or less were achieved by the companies keeping internal factors of acquiring companies constant.

Author: Neelam Rani
Publisher: Springer
ISBN: 9811022038
Category : Business & Economics
Languages : en
Pages : 277

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Book Description
The book examines the market reaction to mergers and acquisitions (M&A) announcements over a period from 2003 to 2015. Mergers and acquisitions continue to be amongst the preferred competitive options available to the companies seeking to grow fast in the rapidly changing global business scenario. M&A as a growth strategy has received attention from developed as well as emerging economies. It has been extensively used by managers as an expansion strategy and also serves as an important instrument for increasing corporate efficiency. Recently, M&A has grown at a rapid pace, creating a need for research to analyze what drives this phenomenon and how it affects firms and markets. As such, this book evaluates the impact of M&A on short-term abnormal returns as well long-term financial performance. It also assesses the management view concerning the motives for undertaking M&A. In addition, the book investigates the corporate governance practices of the acquiring firms and their impact on the short- term as well as long- term performance of those firms.

Author: O. Morresi
Publisher: Springer
ISBN: 1137357622
Category : Business & Economics
Languages : en
Pages : 333

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Book Description
Since their explosion in the mid-1990s, mergers and acquisitions (M&As) have turned into a global phenomenon with growing prevalence. A large number of theoretical and empirical studies focus on cross-border deals from several perspectives, such as motives, strategic issues, and performance. Most books treat these studies as specific characteristics of M&As, paying little attention to the distinctive elements that differentiate them from domestic operations. In short, there is now a real need for a fresh review and categorization of cross-border deals. Cross-Border Mergers and Acquisitions is the first book to provide readers with a complete guide to understanding the main concepts, theories, and results driving cross-border M&As. Morresi and Pezzi present an original framework that ties together the growing body of theoretical and empirical studies on the topic. This work describes the relevance of the phenomenon in terms of its economical, geographical, and historical impact, and analyzes the market- and accounting-based performance of cross-border deals.

Author: Moshfique Uddin
Publisher: Routledge
ISBN: 1135045151
Category : Business & Economics
Languages : en
Pages : 209

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Book Description
Cross-border mergers and acquisitions (CBM&As) activity has become an important vehicle for firms’ internationalization and corporate restructuring over the past three decades. Despite the huge volume of global CBM&A activity, however, there are few books which carefully explore the strategies, motives, and consequences of global mergers and acquisitions. This book discusses and synthesizes the theoretical literature on the motivation and performance of international merger activities. Focusing on the UK as a top acquiring country in the European Union, the authors explore the recent trends in cross-border mergers and acquisitions, motives for cross-border mergers and acquisitions, the mergers integration process, home and host countries’ macroeconomic consequences on mergers and acquisitions, and shareholder’s wealth effects on CBM&A. This book explores and sheds much-needed light on the UK CBM&A market, what drives it, and what lessons can be learned for other regions around the globe.

Author: Vanita Tripathi
Publisher:
ISBN:
Category :
Languages : en
Pages : 18

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Book Description
The present study focuses upon the comparison between the pre and post merger financial performance of the Indian companies undertaking cross border mergers and acquisitions during 1998-2009. An attempt has been made to assess the performance on an aggregate basis, on the basis of timing of the acquisition - before crisis and during crisis and on the basis of the development status of the foreign targets' economies. The results revealed a significant increase in size accompanied with a decrease in profitability, liquidity and solvency. This could be due to various reasons - industry specific factors, timing of the acquisition, status of the development of the target's economy. The other reasons could be companies' inexperience in foreign markets owing to lesser knowledge of handling cross border mergers and acquisitions as compared to western counterparts. A disaggregated analysis on the basis of timing of crisis reported a significantly lower growth in the size for the Indian companies acquiring during the time of US crisis as compared to those which did acquisitions before the crisis. These companies also accounted a significant deterioration of profitability, liquidity and solvency due to an increase in the operating costs and decline in demand. Although, valuation of the foreign companies especially those located in US and Europe during the time of crisis had reduced but for the operation of the merged firms expenses have to be made. However deals done in developed countries provided a significantly higher increase in the size than those done in developing countries owing to higher number of acquisitions in the former group. But the profitability, liquidity and solvency decline was higher in case of deals accomplished in developed countries. Our results suggest that the companies should diversify their portfolio of international exposure. Developing countries are emerging as new breed of consumers. Thus the focus of cross border mergers and acquisitions should be a balanced one considering the time as well as the location of the target.

Author: Ernst & Young LLP
Publisher: John Wiley & Sons
ISBN: 0471578185
Category : Business & Economics
Languages : en
Pages : 372

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Book Description
The economic climate, new regulations and developments both here and abroad have totally changed the face of today's mergers and acquisitions. Completely rewritten and updated, it examines realistic strategies and goals for the 1990s that must be addressed in order to achieve a successful acquisition program. Includes coverage of the post-acquisition process, chapters on restructuring financially troubled companies, and unique strategies that apply to niche acquisitions. It also features new material on international mergers, the pros and cons of partial buy-ins, cross-border alliances, financing options and covers issues (strategic, legal, financial and regulatory) that can affect a deal of any size.

Author: Scott C. Whitaker
Publisher: John Wiley & Sons
ISBN: 1119227453
Category : Business & Economics
Languages : en
Pages : 423

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Book Description
Navigate cross border M&A for a flawless integration execution Cross Border Mergers and Acquisitions is a practical toolbox for corporate strategy and development professionals dealing with the many challenges involved in cross border M&A. With a detailed discussion of key market specifics and broadly-applicable critical insight, this book demystifies the cross border M&A process and provides a host of practical tools that ease strategic implementation. A geographical overview explains the trends in major M&A markets including Australia, Brazil, China, Russia, the U.K., and the U.S., and industry-specific guidance covers Financial Services, Aerospace and Defense, Health Care, Tech, Manufacturing, and more. Leading experts relate lessons learned while managing actual PMI (post merger integration) processes, and the discussion of cultural impacts and specific situational needs provides deep insight into the type of leadership a flawless integration requires. Corporate restructuring and internationalization efforts are increasingly relying on cross border mergers and acquisitions. Strategies, motives, and consequences are a complex navigational minefield, but this insightful guide provides solid, actionable guidance for leading a successful integration. Understand the region-specific details that make an impact Overcome common challenges and manage complex deals Gain practical insight and valuable tools for leading integration Learn the most current best practices for PMI® processes Cross border M&A is complex, with myriad challenges and obstacles inherent to the situation. Successful integration and a smooth transition are critical, and there's little wiggle room—it's a situation where you have only one chance to get it right. Cross Border Mergers and Acquisitions is an essential guide to the process, with key tools for execution.

Author: Sydney Finkelstein
Publisher: Emerald Group Publishing
ISBN: 1836080727
Category : Business & Economics
Languages : en
Pages : 177

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Book Description
Volume 23 of this annual series explores a range of issues, from cross-border mergers and acquisitions, MNE strategies and multi-business firms to outsourcing and strategic choices.

Author: David Faulkner
Publisher: OUP Oxford
ISBN: 0191628034
Category : Business & Economics
Languages : en
Pages : 784

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Book Description
With its inception at the end of the nineteenth century as a means of consolidation and reorganization, mergers and acquisitions (M&A) have since become quasi-institutionalized as one of the primary strategic options for organizations, as they seek to secure their position in an ever more competitive and globalizing market place. Despite the optimism surrounding M&A as strategic moves, research on post-merger company performance suggests that most firms engaging in M&A activity do not achieve the sought-after performance targets, either immediately or in the years following the deal. What is it that drives M&A activity when research results do not support the performance expectations of these undertakings? Alternatively, have M&A scholars got it all wrong in the way that M&A performance is measured? Is the topic too complex, enduring, and multifaceted to study? The Handbook argues that the field of M&A is in need of a re-rooting: past research needs to be critically reviewed, and fundamental assumptions revisited. A key issue preventing efforts in the practice and study of M&A from achieving dynamic syntheses has been the disciplinary gulf separating strategy, finance, and human relations schools. The Handbook aims to bridge the hitherto separate disciplines engaged in the study and practice of M&A to provide more meaningful results. Toward this end, the Handbook brings together a set of prominent and emerging scholars and practitioners engaged in the study of M&A to provide thought-provoking, state of the art overviews of M&A through four specific 'lenses' - strategic, financial, socio-cultural, and sectorial approaches. By summarizing key findings in current research and exploring ways in which the differing approaches could and should be 'synthesized', it aims to highlight the key issues facing M&A practitioners and academics at the dawn of the third millennium.

Author: David R. King
Publisher: Routledge
ISBN: 042989080X
Category : Business & Economics
Languages : en
Pages : 158

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Book Description
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.