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Mergers and Acquisitions Part 3, A Portfolio View - Coggle Diagram
Mergers and Acquisitions Part 3
Revenue
increase market power
overcome
entry barriers
lower cost
create diversification
lower risk
increase revenues
Challenge
different culture
Uncooperative staff from the acquired company
inadequate evaluation of target
pay too much for the company
asymmetric information
higher debt ratio
Requirement
have a strong, credible post-merger plan
clear
identification and quantification of the types of synergies
evaluate the revenue
objectivity in evaluating and
bidding for the target company
predict price at which you're willing to walk away
have some financial slack
A Portfolio View
three key types
divestitures
strategic alliances
mergers and acquisitions
intertemporal effects
add to or complement that capability with say another acquisition
learning and capability augmentation over time through corporate transactions
learning through corporate transactions
acquire resources
EX:Google