Can this merger be saved?

Some mergers and acquisitions fail even before the knot is tied, while others have problems after the agreement is completed. Picking the right partner is critical to the success of the union. In addition to the increase in speed at which mergers and acquisitions are put together, the dollar volume...

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Veröffentlicht in:The Journal of Corporate Accounting & Finance 2000-01, Vol.11 (2), p.17-24
Hauptverfasser: Hurtt, David N., Kreuze, Jerry G., Langsam, Sheldon A.
Format: Artikel
Sprache:eng
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Zusammenfassung:Some mergers and acquisitions fail even before the knot is tied, while others have problems after the agreement is completed. Picking the right partner is critical to the success of the union. In addition to the increase in speed at which mergers and acquisitions are put together, the dollar volume of mergers and acquisitions has also increased greatly. Because M&As are completed more quickly, at record-breaking volumes, the likelihood of deals falling apart during the critical preacquisition phase has also increased. The primary reason to merge with or acquire another company is to accelerate growth. The best way to save an M&A is to start before the merger begins. The plan should incorporate 4 components: 1. an assessment of management's readiness to acquire another company and take on the added responsibilities of managing the new business, 2. a company's financial capability, 3. a description of the industry targeted for merger or acquisition, and 4. the tactics that will be used to identify potential M&A candidates. Improper accounting is another area when M&As can get in trouble.
ISSN:1044-8136
1097-0053
DOI:10.1002/(SICI)1097-0053(200001/02)11:2<17::AID-JCAF5>3.0.CO;2-V