Are bigger acquisitions always better?

Making an acquisition is a lot like getting married. About half the time, it doesn't work out. And the only people who “live happily ever after” are the lawyers. Nevertheless, the urge to merge seems to be on the rise again. More mega‐deals may be on the horizon. But is bigger always better? To...

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Veröffentlicht in:The Journal of Corporate Accounting & Finance 2005-01, Vol.16 (2), p.31-38
Hauptverfasser: Burnie, David A., Hurtt, David, Langsam, Sheldon A.
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container_title The Journal of Corporate Accounting & Finance
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creator Burnie, David A.
Hurtt, David
Langsam, Sheldon A.
description Making an acquisition is a lot like getting married. About half the time, it doesn't work out. And the only people who “live happily ever after” are the lawyers. Nevertheless, the urge to merge seems to be on the rise again. More mega‐deals may be on the horizon. But is bigger always better? To answer this question, the authors analyzed four large acquisitions. They also examined what really enhances value, why some deals fail to add value, and some important accounting issues. © 2005 Wiley Periodicals, Inc.
doi_str_mv 10.1002/jcaf.20086
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source Wiley Journals; Business Source Complete
subjects Acquisitions & mergers
Cost control
Distribution channels
Due diligence
Earnings per share
Efficiency
Executives
Financial analysis
Financial ratios
Periodicals
Purchasing
R&D
Research & development
Scandals
Shareholders wealth
Stock prices
Stockholders
Success
title Are bigger acquisitions always better?
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