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Corporate Diversification/ Acquisition and Restructuring, DINDA SAPHIRA…
Corporate Diversification/ Acquisition and Restructuring
Reasons for Diversification
Value-Creating Diversification
Incentives
Resources
Value-Neutral Diversification
Managerial Motives
to Diversify
Value-Reducing Diversification
Economies of Scope
Market Power
Financial Economics
Reasons for Acquisitions
Increased Market Power
Horizontal Acquisitions
Vertical Acquisitions
Related Acquisitions
Overcoming Entry Barriers
Cross-Border Acquisitions
Cost of New Product Development
and Increased Speed to Market
Lower Risk Compared to Developing New Products
Increased Diversification
Reshaping the Firm’s Competitive Scope
Learning and Developing New Capabilities
An
acquisition
is a strategy through which one firm buys a controlling, or 100 percent, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio.
Restructuring is a
strategy through which
a firm changes its set of
businesses or its financial
structure.
Problems in Achieving Success
Integration Difficulties
Inadequate Evaluation of Target
Large or Extraordinary Debt
Inability to Achieve Synergy
Too Much Diversification
Managers Overly Focused on Acquisitions
Too Large
Restructuring
Downsizing
Downscoping
Leveraged Buyouts
Restructuring Outcomes
DINDA SAPHIRA NABILA SOFYAN 18311072
ZIYAN PUTERI LEFINA 18311336