Ch4 p 2 - Record of Success or Failure A large percent of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Record of Success or Failure A large percent of international M&As fall short of their objectives and one- third are dissolved within a few months or years An international merger or acquisition can yield increased value and profits in a number of ways: 1.Enhances industry consolidation 2.Enables geographic expansion into neighboring regions 3.Enhances expansion into new markets 4.Acquires new technology or products or knowledge 5.Involves combining with one or more other firms in order to realize a synergy that will form a preeminent firm RECORD OF SUCCESS OR FAILURE •Unrealistic expectations •Hastily constructed strategy and unskilled execution •Culture clashes between partners / organizations •Key talent is lost •Lack of trust among managers •Unexpectedly high costs associated with the transition and integration Due diligence •Firms must conduct thorough preliminary due diligence to assess carefully
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/06/2012 for the course HRM 533:315 taught by Professor Castolano during the Spring '12 term at Rutgers.

Page1 / 2

Ch4 p 2 - Record of Success or Failure A large percent of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online