Ch07_09_combo_present_Cho_Final

Eg whole foods acquires wild oats takeover a special

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Unformatted text preview: e firm buys a controlling, or 100% interest in another One 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 special 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 strategy of businesses or financial structure. of – Failure of an acquisition strategy often precedes a restructuring strategy. restructuring – Restructuring may occur because of changes in the Restructuring external or internal environments. external 1–8 Reasons for Acquisitions Learning and developing new capabilities Reshaping firm’s competitive scope Increased diversification Increased market power Overcoming entry barriers Making an Acquisition Lower risk than developing new products Avoid cost of new product dev. Increase s...
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