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Author Sirower, Mark L., 1962-

Title The synergy trap : how companies lose the acquisition game / Mark L. Sirower
Published New York : The Free Press, [1997]


Location Call no. Vol. Availability
 MELB  338.83 Sir/Sth  AVAILABLE
Description xiv, 288 pages : illustrations ; 24 cm
Contents 1. Introduction: The Acquisition Game -- 2. Can You Run Harder? Synergy -- 3. Do You Feel Lucky? The Acquisition Premium -- 4. Tools and Lessons for the Acquisition Game -- 5. Acquirer Performance and Risk Taking -- 6. Methodology -- 7. Discussion of Results -- 8. Implications of the Analysis -- App. A. A Review and Critique of Prior Research on Mergers and Acquisitions -- App. B. Detailed Results of the Analysis in Part 2 -- App. C. Sample and Descriptions of Targets and Acquirers Used in the Analysis
Summary The Synergy Trap is the first expose of its kind to prove that the tendency of managers to succumb to the "up the ante" philosophy in acquisitions often leads to disastrous ends for their shareholders. Sirower shows that companies must meticulously plan - and account for huge uncertainties - before deciding to enter the acquisition game
Building on his groundbreaking research first cited in Business Week, Mark L. Sirower explains how companies often pay too much - and predictably never realize the promises of increased performance and competitiveness - in their quest to acquire other companies. Armed with extensive evidence, Sirower destroys the popular notion that the acquisition premium represents potential value. He provides the first formal and functional definition for synergy - the specific increases in performance beyond those already expected for companies to achieve independently. Sirower's refreshing nuts-and-bolts analysis of the fundamentals behind acquisition performance cuts sharply through the existing folklore surrounding failed acquisitions, such as lack of "strategic fit" or corporate culture problems, and gives managers the tools to avoid predictable losses in acquisition decisions
Notes Based on the author's thesis (doctoral--Columbia University)
Bibliography Includes bibliographical references (pages 225-273) and index
Subject Competition -- United States.
Consolidation and merger of corporations -- United States.
Risk -- United States.
Management buyouts -- United States.
Tender offers (Securities) -- United States.
LC no. 96044862
ISBN 0684832550 (alk. paper)