TITLE

When Bad Things Happen To Good Mergers

AUTHOR(S)
Gooding, Richard Z.
PUB. DATE
September 1998
SOURCE
Financial Executive;Sep/Oct98, Vol. 14 Issue 5, p24
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses the reasons why a majority of business mergers fail. Reasons include management's failure to: evaluate information for decision making, implement due diligence, and recognize information asymmetry. The discussion focuses on the confirmation, availability, and escalation traps which relate to the accuracy of data, unrealistic attitudes of executives, and bias in the decision-making process. Examples include due diligence at DynCorp., a strategic risk assessment before an acquisition by Axxess Technologies, and a takeover strategy at MicroAge.
ACCESSION #
11861708

 

Related Articles

  • WHAT BUYERS AND SELLERS NEED TO KNOW.  // Crain's Cleveland Business;1/18/2010, Vol. 31 Issue 3, pS-5 

    The article presents the author's opinion on what buyers and sellers should know at the time of merger. According to the author, buyers should know that deals will take longer to consummate than in the recent past. Both lenders and seller will conduct more due diligence, so buyers should have...

  • A guide to legal due diligence: the target company's perspective. Bates, Benjamin // Enterprise/Salt Lake City;4/14/2008, Vol. 37 Issue 42, p14 

    The article focuses on the concept of legal due diligence as an important part of business transactions. It explains that due diligence gives buyers crucial information about the prospective company to be acquired and assist them to estimate the cost of purchasing such company. Details on the...

  • Who's Afraid of the Six Big Deal Killers? Jasch, Mark // njbiz;4/9/2007, Vol. 20 Issue 15, Special section p16 

    The article discusses ways to keep merger and acquisition deals alive when due diligence discovers significant concerns. The author enumerates the six factors which can terminate a merger deal, including employee retention and contracts for suppliers and customers. For potential claims of...

  • DUE DILIGENCE IN MERGERS AND ACQUISITIONS -- HOW IMPORTANT IT IS IN TIMES OF CRISES? Miruna-Lucia NACHESCU // Annals of Eftimie Murgu University Resita, Fascicle II, Economi;2010, p111 

    In the present economic context, exceptional operations such as mergers and acquisitions (M&A) are becoming more and more complex, internationally and therefore require independence and high class professionalism. The planning of the merger and acquisition activities and the use of due diligence...

  • Even with strange cats in the yard, get facts before making conclusions. Jay, Robin // Las Vegas Business Press (10712186);6/16/2008, Vol. 25 Issue 24, pP26 

    The author reflects on avoiding the urge to jump into conclusions and learning how to get facts. She notes that things may appear more than they really are when one does not bother to look at the details. She relates how her neighbors thought that she was going crazy while she was trying to...

  • A Brief Comment on Sciencebased Risk Regulation Within the European Union. Stibernitz, Barbara // European Journal of Risk Regulation;2012, Vol. 3 Issue 1, p86 

    The article comments on science-based risk regulation within the European Union (EU) and sums up the central position of science-based risk regulation within the EU. It is mentioned that critical decisions concerning European legislation often involve complex technical information where risk...

  • A Harde Look. Fugazy, Danielle // Mergers & Acquisitions: The Dealermaker's Journal;Jun2008, Vol. 43 Issue 6, p42 

    The article discusses the significance of due diligence on ensuring appropriate investment decisions in the U.S. In due diligence, lenders are looking for a list of target company's weakness, externally and internally. Some issues lenders are aiming to address include the company's positioning...

  • Selling to a hospital? Be sure to look before you leap. Rodriguez, Todd A. // AAOS Now;Dec2010, Vol. 4 Issue 12, p38 

    The article discusses the issues to consider before signing a contract of selling one's practice to a hospital. It suggests the need to conduct an internal due diligence review to ensure that your practice is in a condition to be sold, and consider how hospital employment fits with your...

  • Ongoing IP Due Diligence. Ball, Stephen; Chapman, Kathy // Business Law Today;Nov/Dec2009, Vol. 19 Issue 2, p28 

    The article discusses the significance of Intellectual Property (IP) due diligence to assess the risks of the company in the U.S. It notes that IP due diligence help to assess and provide data to support strategic risk management options of the company. It explains that the ongoing IP due...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics