The Pre-Acquisition Evaluation of Target Firms and Cross Border Acquisition Performance

2010 ◽  
Author(s):  
Mohammad Faisal Ahammad
Keyword(s):  
Acquisition Performance ◽  
Cross Border ◽  
Target Firms

Resilience and risks of cross-border mergers and acquisitions

2019 ◽  
Vol 27 (4) ◽  
pp. 427-450 ◽  
Author(s):  
Ching-Chiu Hsu ◽  
Jeong-Yang Park ◽  
Yong Kyu Lew
Keyword(s):  
Risk Management ◽  
Mergers And Acquisitions ◽  
Mobile Phone ◽  
Design Methodology ◽  
Organizational Resilience ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Multiple Risks ◽  
Target Firms

Purpose In cross-border mergers and acquisitions (M&As), acquirers often fail to achieve the expectations they held when they made the M&A deals. This paper aims to propose that the risks of cross-border M&As can be mitigated by building and cultivating organizational resilience as a prime means of risk management. Design/methodology/approach The research examines risks associated with cross-border M&A and how such risks can be mitigated by developing resilience. It presents dual cases of acquisitions of the biggest branded mobile phone manufacturer in Taiwan. Findings The authors find that the acquirer faces multiple risks in cross-border M&A transactions, including financial, strategic and organizational, and process risks that arise from misalignment between the goal of the M&As and the post-acquisition performance of the target firms. Originality/value The research provides theoretical insights on organizational resilience and how it can mitigate the specific risks involved in cross-border M&As, thereby developing coherent organizational resilience processes.

Post-acquisition control strategy and cross-border acquisition performance of Chinese MNEs: a fsQCA approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qi Yue ◽  
Ping Deng ◽  
Yanyan Cao ◽  
Xing Hua
Keyword(s):  
Fuzzy Set ◽  
Control Strategy ◽  
Multinational Enterprises ◽  
Cultural Distance ◽  
Emerging Market ◽  
Complex Nature ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Chinese Mnes

PurposePost-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance of Chinese multinational enterprises (MNEs) through a configurational perspective.Design/methodology/approachBased on 70 cross-border acquisition cases by Chinese MNEs, we adopt fuzzy-set qualitative comparative analysis (fsQCA) to study the combined effects of strategic control, operational control, institutional distance, cultural distance, relative capacity and business relatedness on the cross-border acquisition performance.FindingsOn the basis of fuzzy set analysis of multiple interdependent factors, we identify six configurations that are conductive to achieving high cross-border acquisition performance and two configurations that relate to the absence of high performance, thus shedding light on the casually complex nature of performance drivers of acquisitions.Originality/valueThis study provides a holistic, configurational approach to investigating cross-border acquisition performance by emerging market firms. Our results provide some compelling evidence that accounts for the causal complexity of post-acquisition control strategies and acquisition outcomes in the context of emerging economies.

Cross-Border Mergers and Acquisitions and the Competitive Positioning of European National Industries

1997 ◽  
Vol 2 (4) ◽  
pp. 359-390
Author(s):  
Massimo G. Colombo ◽  
Sergio Mariotti
Keyword(s):  
Mergers And Acquisitions ◽  
Statistical Tests ◽  
Foreign Direct Investments ◽  
Competitive Advantages ◽  
Competitive Position ◽  
Cross Border ◽  
Target Firms ◽  
Eclectic Paradigm ◽  
International Oligopoly ◽  
Tests Of Hypotheses

This paper relies on the eclectic paradigm of foreign direct investments and Porter's theory on the competitive advantages of nations to study the localisation of target firms of international M&As by European enterprises. Firms' propensities towards extra- and infra-European acquisitions are correlated with the competitive position of European national industries in the international arena. Strategic groups of national industries are created through a cluster analysis based on the Fortune lists of the 500 world largest enterprises. Logit econometric estimates and statistical tests of hypotheses suggest that the share of extra-European acquisitions is greater in a) sectors where European large firms have achieved leadership of the world oligopoly, and b) sectors where the competitive position of Europe is rather weak though stable. Instead, firms belonging to national industries which have been rapidly increasing their share of the international oligopoly during the ′80s concentrate their M&As within Europe. The same holds true for declining weak competitors.

Cross-Border Acquisitions and Target Firms' Performance

2013 ◽  
pp. 347-385 ◽  
Author(s):  
Kyoji Fukao ◽  
Keiko Ito ◽  
Hyeog Ug Kwon ◽  
Miho Takizawa
Keyword(s):  
Cross Border ◽  
Target Firms

Cross-Border LBOs, Human Capital, and Proximity: Value Addition through Monitoring in Private Equity Investments

2020 ◽  
pp. 1-41
Author(s):  
Thomas J. Chemmanur ◽  
Tyler J. Hull ◽  
Karthik Krishnan
Keyword(s):  
United States ◽  
Human Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
The United States ◽  
Efficient Allocation ◽  
Value Addition ◽  
Cross Border ◽  
Target Firms ◽  
Public Offering

We show that cross-border leveraged buyout investments involving U.S. rather than non-U.S. private equity (PE) investors are more likely to have a successful exit (initial public offering or acquisition). Exogenous increases in effective proximity following the signing of “open sky agreements” between the United States and target firms’ home countries increases both the propensity of U.S. PE firms to invest in these firms and the value addition by these investors. We show that such increases in value addition by U.S. PE investors following proximity increases are at least partially due to better monitoring, facilitated by the more efficient allocation of experienced U.S. PE managers to cross-border deals.

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