Extract of sample
Of cours ths findings dpnd on th sctor nd th typ of M& tht ws don. Mny fctors ply n importnt rol in th furthr succss of th compnis, nd th on, myb th most importnt cn b th knowldg nd bility to crt vlu ftr.
Mrgrs nd cquisitions, two forms of rstructuring, rprsnt both strtgic opportunitis nd thrts for compnis, s ownrship chngs hnds. Mrgrs nd cquisitions crry on stting nw rcords in both volum nd siz. cquisitions probbly r not th quickst wy to grow comprd to othr options nd, from th prspctiv of top mngrs, thy r stimulting nd oftn finncilly rwrding. Howvr, by most ccounts, cquisitions r pron to filur, with som hving disstrous consquncs.
Studis of th short-trm ffcts of M&s point out tht M&s gnrt vlu, vn though most of this vlu ccrus to th trgt firm. Rsrch in th US nd UK indicts tht th shrholdrs of th trgt firms xprincd gins of btwn 16% nd 45%. cquiring firms' shrholdrs, on th othr hnd, xprincd bnorml rturns rnging from -1.1% to 7.9%. Th combind firms' bnorml rturn ws btwn 1.8% nd 3.5%. (S Jnsn & Rubck 1983; Frnks & Hrris 1989; Bchr 2000; Mulhrin & Boon 2000; Kohrs & Kohrs 2000; ndrd t l. 2001.)
Th long-trm ffcts of M&s in th US nd th UK hv bn xmind xtnsivly (S grwl, Jff & Mndlkr 1992, Brns 1984, Frnks, Hrris & Titmn 1991, Grgory 1997, Knndy & Limmck 1996, Limmck 1991, Lodrr & Mrtin 1992, Loughrn & Vijh 1997, Mitchll & Stfford 2000, Ru & Vrmln 1998). ...