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Unformatted text preview: e firm buys a controlling, or 100% interest in another
firm with the intent of making the acquired firm a
subsidiary business within its portfolio.
– E.g. Whole Foods acquires Wild Oats • Takeover
– A special type of acquisition when the target firm did not
solicit the acquiring firm’s bid for outright ownership.
– E.g. PeopleSoft was taken over by Oracle
E.g. 1–7 Restructuring
• A strategy through which a firm changes its set
of businesses or financial structure.
– Failure of an acquisition strategy often precedes a
– Restructuring may occur because of changes in the
external or internal environments.
external 1–8 Reasons for Acquisitions Learning and
new capabilities Reshaping firm’s
competitive scope Increased
entry barriers Making an
Acquisition Lower risk than
products Avoid cost of new
product dev. Increase s...
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- Spring '12