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Unformatted text preview: to relatively rigid
and standardized managerial behavior.
• The firm may produce less innovation. 1–26 Problems in Achieving Acquisition Success
target evaluation Too large Managers
overly focused on
acquisitions Too much
Acquisitions Extraordinary debt Inability to
achieve synergy 1–27 Effective Acquisition Strategies
Attributes Results Complementary
Assets Buying firms with assets that meet
current needs to build competitiveness.
Acquisitions Friendly deals make integration go more
smoothly. Careful Selection
Process Deliberate evaluation and negotiations
are more likely to lead to easy
integration and building synergies.
integration Maintain Financial
Slack Provide enough additional financial
resources so that profitable projects
would not be foregone.
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- Spring '12