Ch07Lecture slides

Ch07Lecture slides - KnowledgeObjectives Corporate...

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7–1 Knowledge Objectives Corporate Strategy: Key Question: How should the corporation enter new lines of business? Frequent Answer: Merger and acquisition activity WHY do firms use an acquisition strategy to enter new lines of business? What are the problems that work against developing a competitive advantage using an acquisition strategy? What are the attributes of effective acquisitions? Explain the short- and long-term outcomes of the different types of restructuring strategies.
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7–2 Mergers, Acquisitions, and Takeovers: What  are the Differences? Merger two firms agree to integrate their operations on a relatively coequal basis Acquisition one firm buys a controlling or 100% interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio Takeover special type of acquisition when the target firm does not solicit the acquiring firm’s bid for outright ownership
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7–3 Acquisitions: Increased Market Power Factors increasing market power ability to sell goods or services above
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Ch07Lecture slides - KnowledgeObjectives Corporate...

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