{"product_id":"mergers-isbn-9780471419006","title":"Mergers","description":"A powerful guide for seeking out the best acquisition and merger targets\u003cbr\u003e As increasingly more companies look to mergers and acquisitions (M\u0026amp;As) as a source of new growth and revenue, there is an even greater chance that these M\u0026amp;As will go bad. This insightful guide focuses on one of the most often debated and key issues in mergers and acquisitions-why some deals fail miserably and why others prosper. It provides a complete road map for what potential buyers should look for when picking a target and what characteristics of sellers they should steer clear of, as well as pitfalls to avoid during the M\u0026amp;A process. Real-world examples are provided of high-profile failures-Quaker Oats, United Airlines, Sears, and Mattel-and high-profile successes-General Electric and Cisco.\u003cbr\u003e Patrick A. Gaughan (New York, NY) is President of Economatrix Research Associates and a professor of Economics and Finance at the College of Business, Fairleigh Dickinson University. He is actively engaged in the practice of business valuations for mergers and acquisitions, as well as other related applications.  Preface.  \u003cp\u003e\u003cb\u003eChapter 1: Introduction to Mergers and Acquisitions.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground and Terminology.\u003c\/p\u003e \u003cp\u003eMerger Process.\u003c\/p\u003e \u003cp\u003eEconomic Classifications of Mergers and Acquisitions.\u003c\/p\u003e \u003cp\u003eRegulatory Framework of Mergers and Acquisitions.\u003c\/p\u003e \u003cp\u003eAntitrust Laws.\u003c\/p\u003e \u003cp\u003eState Corporation Laws.\u003c\/p\u003e \u003cp\u003eHostile Takeovers.\u003c\/p\u003e \u003cp\u003eTakeover Defense.\u003c\/p\u003e \u003cp\u003eLeveraged Transactions.\u003c\/p\u003e \u003cp\u003eRestructurings.\u003c\/p\u003e \u003cp\u003eReasoning for Mergers and Acquisitions.\u003c\/p\u003e \u003cp\u003eTrends in Mergers.\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003eCase Study: Lessons from the Failures of the Fourth Merger Wave.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2: Merger Strategy: Why Do Firms Merge?\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGrowth.\u003c\/p\u003e \u003cp\u003eExamples of Growth as an Inappropriate Goal.\u003c\/p\u003e \u003cp\u003eUsing M\u0026amp;As to Achieve Growth.\u003c\/p\u003e \u003cp\u003eM\u0026amp;As in a Slow-Growth Industry as a Way to Achieve Growth.\u003c\/p\u003e \u003cp\u003eSynergy.\u003c\/p\u003e \u003cp\u003eMerger Gains: Operating Synergy or Revenue Enhancements—Case of Banking Industry.\u003c\/p\u003e \u003cp\u003eIndustry Clustering.\u003c\/p\u003e \u003cp\u003eDeregulation.\u003c\/p\u003e \u003cp\u003eImproved Management Hypothesis.\u003c\/p\u003e \u003cp\u003eHubris Hypothesis of Takeovers.\u003c\/p\u003e \u003cp\u003eWinner’s Curse and the Hubris Hypothesis.\u003c\/p\u003e \u003cp\u003eCross-Industry Deals and Hubris.\u003c\/p\u003e \u003cp\u003eDiversification and CEO Compensation.\u003c\/p\u003e \u003cp\u003eDiversification that Does Seem to Work Better: Related Diversification.\u003c\/p\u003e \u003cp\u003eMerging to Achieve Greater Market Power.\u003c\/p\u003e \u003cp\u003eDo Firms Really Merge to Achieve Market Power?\u003c\/p\u003e \u003cp\u003eMerging to Achieve the Benefits of Vertical Integration.\u003c\/p\u003e \u003cp\u003eSpecial Cases of Mergers Motivated by Specific Needs.\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003eCase Study: Vivendi.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3: Merger Success Research.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCriteria for Defining Merger Success Using Research Studies.\u003c\/p\u003e \u003cp\u003eTakeover Premiums and Control.\u003c\/p\u003e \u003cp\u003eInitial Comment on Merger Research Studies.\u003c\/p\u003e \u003cp\u003eResearch Studies.\u003c\/p\u003e \u003cp\u003eMergers of Equals: Acquirers versus Target Gains.\u003c\/p\u003e \u003cp\u003eFirm Size and Acquisition Gains.\u003c\/p\u003e \u003cp\u003eLong-Term Research Studies.\u003c\/p\u003e \u003cp\u003eLong- versus Short-Term Performance and Method of Payment.\u003c\/p\u003e \u003cp\u003eBidder Long-Term Effects: Methods of Payment.\u003c\/p\u003e \u003cp\u003eBidder’s Performance Over the Fifth Merger Wave.\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003eCase Study: Montana Power—Moving into Unfamiliar Areas.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4: Valuation and Overpaying.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValuation: Part Science and Part Art.\u003c\/p\u003e \u003cp\u003eValuation: Buyer versus Seller’s Perspective.\u003c\/p\u003e \u003cp\u003eSynergy, Valuation, and the Discount Rate.\u003c\/p\u003e \u003cp\u003eFinancial Synergies and the Discount Rate.\u003c\/p\u003e \u003cp\u003eToe Holds and Bidding Contests.\u003c\/p\u003e \u003cp\u003eBidding Contest Protections.\u003c\/p\u003e \u003cp\u003eOverpaying and Fraudulent Seller Financials.\u003c\/p\u003e \u003cp\u003eValuation and Hidden Costs.\u003c\/p\u003e \u003cp\u003ePostmerger Integration Costs—Hard Costs to Measure.\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003eCase Study: AOL Time Warner.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5: Corporate Governance: Part of the Solution.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGovernance Failure.\u003c\/p\u003e \u003cp\u003eRegulatory Changes.\u003c\/p\u003e \u003cp\u003eCorporate Governance.\u003c\/p\u003e \u003cp\u003eManagerial Compensation and Firm Size.\u003c\/p\u003e \u003cp\u003eManagerial Compensation, Mergers, and Takeovers.\u003c\/p\u003e \u003cp\u003eDisciplinary Takeovers, Company Performance, and CEOs and Boards.\u003c\/p\u003e \u003cp\u003eManagerial and Director Voting Power and Takeovers.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Mergers and Acquisitions and Corporation Acquisition Decisions.\u003c\/p\u003e \u003cp\u003ePost-Acquisitions Performance and Executive Compensation.\u003c\/p\u003e \u003cp\u003eLessons from the Hewlett-Packard–Compaq Merger: Shareholders Lose, CEOs Gain.\u003c\/p\u003e \u003cp\u003eCEO Power and Compensation.\u003c\/p\u003e \u003cp\u003eDo Boards Reward CEOs for Initiating Acquisitions and Mergers?\u003c\/p\u003e \u003cp\u003eCorporate Governance and Mergers of Equals.\u003c\/p\u003e \u003cp\u003eAntitakeover Measures and Corporate Governance.\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003eCase Study: WorldCom.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6: Reversing the Error: Sell-Offs and Other Restructurings.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDivestitures.\u003c\/p\u003e \u003cp\u003eDecision: Retain or Sell Off.\u003c\/p\u003e \u003cp\u003eSpin-Offs.\u003c\/p\u003e \u003cp\u003eInvoluntary Spin-Offs.\u003c\/p\u003e \u003cp\u003eDefensive Spin-Offs.\u003c\/p\u003e \u003cp\u003eTax Benefits of Spin-Offs.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Sell-Offs.\u003c\/p\u003e \u003cp\u003eRationale for a Positive Stock Price Reaction to Sell-Offs.\u003c\/p\u003e \u003cp\u003eWealth Effects of Voluntary Defensive Sell-Offs.\u003c\/p\u003e \u003cp\u003eWealth Effects of Involuntary Sell-Offs.\u003c\/p\u003e \u003cp\u003eFinancial Benefits for Buyers of Sold-Off Entities.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Spin-Offs.\u003c\/p\u003e \u003cp\u003eCorporate Focus and Spin-Offs.\u003c\/p\u003e \u003cp\u003eEquity Carve-Outs.\u003c\/p\u003e \u003cp\u003eBenefits of Equity Carve-Outs.\u003c\/p\u003e \u003cp\u003eEquity Carve-Outs Are Different from Other Public Offerings.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Equity Carve-Outs.\u003c\/p\u003e \u003cp\u003eUnder Which Situations Should a Company Do a Spin-Off versus an Equity Carve-Out?\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Tracking Stock Issuances.\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003eCase Study: DaimlerChrysler.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7: Joint Ventures and Strategic Alliances: Alternatives to Mergers and Acquisitions.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eContractual Agreements.\u003c\/p\u003e \u003cp\u003eComparing Strategic Alliances and Joint Ventures with Mergers and Acquisitions.\u003c\/p\u003e \u003cp\u003eJoint Ventures.\u003c\/p\u003e \u003cp\u003eMotives for Joint Ventures.\u003c\/p\u003e \u003cp\u003eRegulation and Joint Ventures.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Joint Ventures.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects by Type of Venture.\u003c\/p\u003e \u003cp\u003eRestructuring and Joint Ventures.\u003c\/p\u003e \u003cp\u003ePotential Problems with Joint Ventures.\u003c\/p\u003e \u003cp\u003eStrategic Alliances.\u003c\/p\u003e \u003cp\u003eGovernance of Strategic Alliances.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects of Strategic Alliances.\u003c\/p\u003e \u003cp\u003eShareholder Wealth Effects by Type of Alliance.\u003c\/p\u003e \u003cp\u003eWhat Determines the Success of Strategic Alliances?\u003c\/p\u003e \u003cp\u003ePotential for Conflicts with Joint Ventures and Strategic Alliances.\u003c\/p\u003e \u003cp\u003eCross Stock Holdings as Conflict Insurance.\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003eCase Study: AT\u0026amp;T.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e PATRICK GAUGHAN, PhD, is President of Economatrix Research Associates, Inc., and Professor of Economics and Finance at the College of Business, Fairleigh Dickinson University. He performs business valuations for mergers and corporate restructurings, and serves as a consultant for several Fortune 500 companies. He has authored numerous articles and books, including Mergers, Acquisitions, and Corporate Restructurings (published by Wiley), which was named the Association of American Publishers Best Book of the Year in Accounting for 1996.   As companies increasingly look to mergers and acquisitions as a source of new growth and revenue in today's competitive environment, it's vital to learn from the past and avoid costly merger mistakes. Company leaders need reliable answers to such questions as:  \u003cul\u003e \u003cli\u003eWhy do some mergers fail miserably while others prosper?\u003c\/li\u003e \u003cli\u003eIs there a common denominator for the failures?\u003c\/li\u003e \u003cli\u003eWhat role do CEOs play in the success\/failure equation?\u003c\/li\u003e \u003cli\u003eCan businesses learn from merger mistakes?\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eMergers: What Can Go Wrong and How to Prevent It answers these questions and more.\u003c\/p\u003e \u003cp\u003eComplete with numerous real-world case histories of high-profile, high-stakes failures and successes, this book objectively analyzes previous mergers and explains:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eWhat potential buyers should look for when picking a target\u003c\/li\u003e \u003cli\u003eWhat potential buyers should look out for when picking a target—characteristics to steer clear of\u003c\/li\u003e \u003cli\u003ePitfalls to avoid during the merger and acquisition process\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eMergers identifies key characteristics of successful mergers by companies such as GE and Cisco, and it also provides pitfalls to avoid by examining mergers that failed, including AT\u0026amp;T, DaimlerChrysler, WorldCom, Quaker Oats, United Airlines, Sears, and Mattel. All research is illustrated with informative exhibits and tables to help readers grasp important concepts.\u003c\/p\u003e \u003cp\u003eMergers extracts important findings from a wide variety of pragmatic research that managers and directors can apply to avoid failed deals. Presented in an easy-to-understand manner, readers get the benefit of the bottom-line conclusions from years of research in this area. It also shows how companies should be valued so as to avoid overpaying. The book is a must-read for all those contemplating buying or merging with another company. In addition, the corporate governance of mergers and acquisitions is carefully analyzed.\u003c\/p\u003e \u003cp\u003eIf you're a CEO, CFO, COO, financial manager, consultant, or board member of a company that might be involved in a merger or acquisition; if you're a stockholder who wants to determine if a merger or acquisition is really in your best interest; if you're a businessperson who needs to understand mergers and acquisitions in order to better position or protect your company—this is a must-read! It's the risk-free way to learn from others' merger-related mistakes.\u003c\/p\u003e  AT\u0026amp;T, WorldCom, DaimlerChrysler, Quaker Oats, United Airlines, Sears, and Mattel all did megabillion-dollar flops  \u003cp\u003eThese highly touted, high-profile mergers failed miserably. Even to most experts and advisors they looked good on paper. However, until now, it was hard to know exactly what to look for!\u003c\/p\u003e \u003cp\u003eMergers: What Can Go Wrong and How to Prevent It changes that. Noted authority Patrick Gaughan researches past merger successes and failures and zeros in on determining factors. He goes beyond the financials and strategies to examine the motives, the process, the laws, valuations, the role of corporate governance, and current trends in mergers.\u003c\/p\u003e \u003cp\u003eIf you're a CEO, COO, accountant, auditor, corporate attorney, consultant, director, or shareholder, this book keeps you from being swept up by merger-mania and tells you what to look for, and what to look out for, in mergers.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989609332965,"sku":"NP9780471419006","price":65.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780471419006.jpg?v=1761784796","url":"https:\/\/k12savings.com\/es\/products\/mergers-isbn-9780471419006","provider":"K12savings","version":"1.0","type":"link"}