Ch07_09_combo_present_Cho_Final

Current friendly acquisitions friendly deals make

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Unformatted text preview: to relatively rigid Formalized and standardized managerial behavior. and • The firm may produce less innovation. 1–26 Problems in Achieving Acquisition Success Integration difficulties Inadequate target evaluation Too large Managers Managers overly focused on overly acquisitions Too much diversification Problems with Acquisitions Extraordinary debt Inability to achieve synergy 1–27 Effective Acquisition Strategies Attributes Results Complementary Complementary Assets /Resources Assets Buying firms with assets that meet Buying current needs to build competitiveness. current Friendly Acquisitions Friendly deals make integration go more Friendly smoothly. smoothly. Careful Selection Careful Process Process Deliberate evaluation and negotiations Deliberate are more likely to lead to easy integration and building synergies. integration Maintain Financial Maintain Slack Slack Provide enough additional financial Provide resources so that profitable projects would not be foregone. would 1–2...
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