Index
Advances in Mergers and Acquisitions
ISBN: 978-1-78714-693-8, eISBN: 978-1-78714-692-1
ISSN: 1479-361X
Publication date: 27 June 2017
This content is currently only available as a PDF
Citation
(2017), "Index", Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 16), Emerald Publishing Limited, Leeds, pp. 209-217. https://doi.org/10.1108/S1479-361X20170000016011
Publisher
:Emerald Publishing Limited
Copyright © 2017 Emerald Publishing Limited
INDEX
Absenteeism
, 118
Acquirer(s) of firm
, 3, 5, 103
alliance use for potential targets
, 4
partnering activities
, 8
post-acquisition performance
, 12
Acquisition behavior
, 5
Affective commitment
, 118
Aggression
, 169
active
, 175
open
, 175
Alienation, concept of
definition of
, 119–120
dimensions of
, 120
feeling among employees
, 119–120
Alliances
, 2
acquisitions, impact on
, 8
as alternative governance choices
, 4
challenges in
, 9–10
comparison between acquisitions and
, 3–4
conversion to acquisitions
, 5
motivations for
, 3
networks
, 14
partner
, 13
exploration alliances and potential acquisition
, 14
opportunistic behavior of
, 5
prior deals
, 4
prior experience, importance of
, 5
See also Mergers and acquisitions (M&As)
Arbitrage process
, 40
Arbitrageurs
, 56
transactions by
, 40
Bad behavior
, 77
Balanced scorecard
, 70, 73–74
Bargaining
, 169
Behavioral due diligence (BDD)
, 22, 32–33
assessment
guidelines for
, 25–26
lists for
, 27
definition of
, 23, 26
importance of
, 30–31
merits assessment
, 30–31
pre-M&A
, 31
thorough screening of management
, 25
Behavioral theory of firm
, 6–9
Behavioral training
, 121
Benchmarking
, 72–74
Biculture
, 49
Blank-cheque company
, 85
Book value (BVpost-acquisition)
, 87
Bounded rationality
, 75
Business
characteristics of
, 103
classification of
, 100
economics
, 23
multi-faceted business deal
, 121–122
organizations
, 185
professional advisers, role of
, 187
Business model diversification
, 100–102, 107–108
Business model, notion of
, 100, 103, 108
managerial implications
, 109
post-acquisition performance
, 102–104, 106, 108–110
Business model relatedness, concept of
, 102, 110
acquisition of
related business models
, 104–106
unrelated business models
, 106–107
diversification into related and unrelated business models
, 104
limitations and research directions for future
, 110
organizational identity research
, 108
post-acquisition performance
, 108
Business model validation
, 105
Calculative commitment
, 118
Capital investment financial analysis techniques
, 69
Capital investment project
, 70–71
Cash balance of the SPAC (CSPAC)
, 87
Change management
, 121–123
Commitment
definition of
, 118
strength of individual’s identification
, 119
See also Organizational commitment
Competency development training
, 121
Competing Values Framework
, 27
Completion risk
, 40, 56–57
Computer simulation and beta (CAPM) analysis
, 73
Conflict in mergers and acquisitions
, 166–167, 176
evidence of
, 167–169
intergroup conflicts
, 169
study of
, 169–170
between subgroups
, 169
types of
, 167
Conflict resolution training
, 121
Contagion mechanisms
, 173
Continuance commitment
, 118–119
Conventional financial analyses
, 69
Conventional investment appraisal techniques
, 69
Copycat behavior
, 77
Corporate cultures
, 51, 53, 56–57
decisions, impact of
, 46
definition of
, 46
direction of human resources
, 46
targeted entity
, 47
See also Mergers and acquisitions (M&As)
Corporate governance
, 184
Corporate strategy
, 100, 103, 109–110
Cross-border M&As
, 50–51, 122
between US Inc and UK PLC
, 192–194
Cross-business synergy
, 109
Cross-business transferability of strategic resources
, 108
Cross-cultural
training
, 121–122
work alienation
, 120
Cultural assessment worksheet
, 27
Cultural audit
, 52–53
Cultural collisions
, 52
Cultural conflict
, 53, 167
Cultural differences
, 167–168
Cultural dimensions
, 48–49
Cultural due diligence (CDD)
, 27, 52
Cultural fit
, 43, 45, 52–53, 57, 167
Cultural isolation
, 120
Culture(s)
clashes or collision
, 167
cost of
, 168
definition of
, 27, 46
egalitarian
, 50
levels of
, 27
primary mechanisms
, 26–27
Customers
, 51, 54, 70, 105–107, 187, 192
Decision trees
, 75
Denison Survey
, 27
Depression
, 127, 169
Discounted cash flows (DCFs)
, 69, 75
capital investment decisions
, 70
Dispute processing
, 174
Dual processing in decision-making
, 77
Due diligence (DD)
, 22, 24, 32
behavioral
, 25–26
cultural
, 25
Earnings per share (EPS)
, 92
EEOE complaints in United States
, 62
Emotional training
, 121, 124, 127
Employee redundancies, concept of
, 119
Employees
, 187
attitudes
, 117
commitment to organization
, 118–119
feelings of alienation among
, 119–120
and M&As
departure and retention, reasons for
, 46
dysfunctional effects
, 166
economic incentives to retain
, 42
exit
, 43
files consolidation during early phase
, 44
low commitment of acquired entity
, 119
non-financial benefits
, 42
personnel needs, impact of neglecting
, 51
realignment of positions and functions
, 46
retention
, 42
targeted firms
, 59
transfer from remote locations
, 44
wage alignment
, 45
openness to large-scale change
, 117
turnover
, 60, 117
Escrow account
, 84, 86
Escrowed investment (EISPAC)
, 87
Expected value tables
, 75
Fair market value of the target (FMVtarget)
, 87
Financial analysis technique
, 68
in UK companies
, 73
Financial audit
, 53
Financial incentives
, 38, 42
Financial option-pricing model
, 70
Foreign direct investment
, 40
Goodwill, concept of
, 39
Greenfield ventures/investment
, 11
Group-level equality
, 145
Hierarchy
, 29
of risk classifications
, 135
social power structure in organization
, 50
Horizontal merger
, 54
HR due diligence
, 27
Human asset management
, 27
Human Capital Association’s (HCA)
, 32
Human capital audit
, 53–54
Human capital of M&As
, 43–55, 61
Human due diligence
, 26–27
Human integration, goals and objectives of
, 46
Human-relationship-base risks
, 142
Human resources (HR)
, 38, 43–44, 49, 56–57, 116, 127–128
audit
, 61
autonomy
, 117
-based variables
, 117
consolidation of, difficulties faced during
, 44–45
future operations
, 46
role in PMI
, 142
Individualism/individualistic culture
, 50
Individual perceptions risk
, 146–150
Information asymmetry
, 9–10
Information seeking process
, 144
Initial public offering (IPO)
, 83–85, 88, 90
Integration process
, 4–5, 176
barriers in
, 119
challenges during
, 123
cross-border deal
, 122
importance of
, 116
managerial
, 46
risk
, 137–142
sociocultural
, 46
Inter-firm
collaborations
, 4
competition
, 2
governance mechanisms
, 2
partnerships
, 4
relationship
, 5
Intergroup dynamics
, 168
Internal rate of return (IRR)
, 69, 73
Internal stakeholder interview
, 27
International alliance
, 10, 14
Interorganizational structure
, 173
Intuitution
, 76–77
Investment appraisal technique
, 68
Investment bank advisers
control over client decisions
, 189
powers of
, 188
role
, 188
in US Inc merger with UK PLC
, 196
top management relationship with
, 189–190
Japanese banks
, 41
Japanese firms
, 40–41
Job
analysis
, 53
insecurity
, 175
-related training
, 121–122
Joint
brokerage
, 14
ventures
, 68
Knowledge
-based firms
, 42
as competitive resource
, 42
depreciation of
, 41
dilemmas to transfer
, 42
shared among group
, 145
through M&As
, 41
Leader/leadership
, 76
definition of
, 28
exemplary
, 28
and managers, differences between
, 30
pro-social
, 28
strategic
, 29
tasks and actions of
, 28–30
Lemon problem
, 39
Leveraged buyout (LBO) transaction
, 87, 94
Lingering conflicts
, 169
Low-power groups
, 145
Management
, 176
change
, 122
emotions associated with
, 123
definition of
, 28
grouping of workers
, 171
vs leadership
, 29
Managerial energy absorption
, 51–52
Managers
definition of
, 28
disempowerment feeling among
, 120
focus of
, 38
intuition and knowledge use by
, 78
need to identify integration stages
, 125
need to investigate employees oversupply
, 44
new job roles, identification of
, 122
responsibility towards stakeholders
, 186
shaping of events
, 116
tasks and actions of
, 28–30
See also Leader; Mergers and acquisitions (M&As)
Manifest conflict
, 175
Market value (MV)
, 92
Meaninglessness
, 120
Membership, notion of
, 149
Mergers and acquisitions (M&As)
, 2, 12–13, 21–22, 61, 68
acquiring of knowledge
, 41
behavior
, 7
cultural perspective
, 166
deals between 1998 and 2000
, 116
distractions from
, 41
ethical/ethicality
analysis
, 203–204
approaches to
, 190–192
assessment of activities of
, 189
deal, assessment process
, 193
evaluations of
, 190
failure of
, 38
focus of manager
, 56
governance choice
, 4
human impact of performance
, 31
human resources
, 38
decisions
, 57
human side of
, 166
integration of
, 45
large organizations, previous research focus on
, 43
leadership
ethical aspects
, 24
specific areas
, 23
study of
, 24
motivations for
, 3
multidivisional structure (M-form)
components of
, 42–43
facets of
, 42
negotiations between parties
, 39
objectives of
, 168–169
organizational dimensions
, 45
outcome
, 7
phases of
combination
, 22–23
post-combination
, 23
pre-combination
, 22
post-M&A workforce
, 53–55
process of
, 25
procurement strategies
, 39
productivity and ownership change, direct relationship between
, 117
psychological perspective
, 166, 168
uncertainty in
, 168
reality and risks
, 40
regulatory environment influence on
, 50
research agenda
, 25
shareholders and employees, withdrawal of
, 39
social perspective
, 166
as strategic tools for growth and prosperity
, 116
strategy of choice for organizations over
, 116
success, criteria for
, 38
of U.S. firms by Japanese firms
, 41
See also Alliances; Stakeholders
Merging Cultures Evaluation Index
, 27
Multibusiness firms
, 102–103
Multi-cultural workforce
, 122
Multinational organization
, 49
Multiple culture
, 49
National culture
acquired in early childhood, dimensions
, 48
auditing practices
, 49
critical characteristics
, 50
differences impact on M&As
, 47
financial and managerial strategies, influence on
, 49
impact of
, 47–48
non-corporate language, prohibition of
, 51
prediction of consumers
, 49–50
religion, inclusion of
, 47
Negotiated order theory
, 170, 175–176
Negotiation(s)/negotiating
, 5, 8–9, 13, 169, 177
formal
, 170
with post-merger order
, 170–176
See also Conflict in mergers and acquisitions
Net assets acquired from target (NAtarget)
, 87
Net asset value (NAV)
, 92
Net present value (NPV)
, 69, 73
Networks
impact of
, 14
types of
, 14
Network theory (NT)
, 7, 13–14
Non-realistic conflict
, 169
Normative commitment
, 119
Normlessness
, 120
One-size-fits-all management style
, 123
Organizational behavior (OB)
, 26, 117
Organizational climate
, 144
Organizational commitment
components of
, 118
definition of
, 118
Organizational culture
, 27, 172
Organizational fit
, 3, 5, 45, 116
Organizational learning perspective
, 8
Organizational members
, 168, 171–172, 176
Organizational size
, 43–44, 58
Organization communicates
, 144
Organization conditions
, 142, 144
Partner(s)/partnering
, 3, 8, 12
alliance
, 5
exchange
, 104
information asymmetry between targets and
, 9
merge, culture of
, 33
opportunistic behavior
, 5
potential
, 10, 25
pre-acquisition
, 14
preferred interaction
, 170
prior interactions, importance of
, 9
Payback (PB) period
, 69–70
PMI Risk Framework (PRF)
, 133, 135, 145, 151
Portfolio managers, large
intermediary between shareholders and organization
, 188
role of
, 188
top management relationship with
, 189–190
Post-acquisition integration of new business
, 110
Post-M&A integration (PMI)
, 9, 124, 170
aim of
, 136
attention-based view
, 136
categorization of people on firm origin
, 168
cultural unification
, 150
employees
training methods for
, 121
transformational change
, 148
factors in
, 116
integration of technology
, 136
management of
, 134–137
managerial attention
, 136
merger or acquisition during, criteria for success
, 136
negotiation
, 171
risks
, 138–139
training variable, importance of
, 117
Power-based conflict
, 167
Powerlessness
, 119–120
Pre-merger M&A
, 23–24, 32
Prior alliances
, 2, 6, 8–9
deals
, 4
superior acquisition performance
, 5
Private dispute processing
, 174–175
Private equity (PE)
, 85
Probability
, 12, 73, 75, 91–92, 137
Professional advisers
, 187
Professional service
, 187
Prospect theory
, 75, 186
Psychological contract
, 147–148
Public dispute processing
, 174–175
Real options analysis
, 70–71
Real options theory (ROT)
, 7, 10–12
Related acquisitions
, 102
Relatedness, concept of
dimensions in multibusiness firms
, 102–103
portfolio
, 103
Relational network
, 142
Relational risk
individual perceptions risk
, 146–150
organizational conditions risk
, 143–146
threat to performance
, 142
See also Post-M&A integration (PMI)
Relative centrality
, 14
Relative standing, theory of
, 51
Resource-based view (RBV) of firm
, 7, 12–13, 102
strategic resources sharing
, 108
Resource dependence theory
, 186
Resource transferability
, 102, 107, 110
Retention, Reallocation and Release (Three R’s) decision
, 53–54, 57–59
Return on assets (ROA)
, 69
Return on investment (ROI)
, 69, 92, 94
Risk
advance of deal
, 138
as analysis
, 76
completion
, 57
fundamental ways
, 76
leadership
, 140–141
performance
, 139–140
relational
, 142
Risk analysis approach
, 69
Risk analysis techniques in UK companies
, 74
Self-estrangement
, 120
Sensitivity analysis
, 75
Shareholders
, 39, 56, 85, 184–187, 189, 191
avoid completion risk
, 57
need high return on own stock
, 192
negotiating values and risk
, 57
non-founder
, 84
US Inc
, 196–197
value
, 55
value destruction
, 88
Shell company or corporation
, 83, 85, 89, 94–95
Side-bet theory
, 118
Social conflict
, 169
Social embeddedness theory
, 13
Social equality and inequality
, 145–146
Social identity
, 148–150
Social influence theory
, 173
Social interaction culture
, 145
Social isolation
, 120
Social order
, 170
Social structure
, 170, 172–173, 175–176
SOLAR approach
, 27
SPAC managers (Emanagers)
, 87
Span of control
, 173
Special purpose acquisition company (SPAC)
acquisition
process
, 84
target
, 84
acquisition deal
, 89
alternative to traditional IPO
, 89
benefits of being listed
, 89
blank-cheque company
, 85
capital configuration of
, 86–87
cash reserve
, 87
characteristics of
, 86
creators and management team
, 89–90
emergence of
, 83–84
failed
, 91
investment vs PE investment
, 87–88
investors, attractiveness for
, 85–86
leadership role in success of
, 94–95
mutual trust between managers and investors
, 88
positive and negative returns after deal announcement
, 85
post-acquisition, survival strategy
, 92–94
post-merged
, 91–92
post-merger, benefits and impact
, 90–92
protection of investors money
, 89
raising money through IPO
, 83
shell company or corporation
, 85, 95
as a single-acquisition PE firm
, 85
small group of high-profile persons
, 85
surviving
, 91
transaction
, 84
Stakeholders/stakeholder theory
, 47, 50, 52, 57, 90, 93, 95, 106, 122, 142
-centric approach
, 185
commitment act
, 90–91
ethical responsibilities
, 185
external
, 107
groups, types of
, 187
identification of
, 186
interests in US Inc UK PLC takeover
, 202–203
internal
, 27
involvement in survival of post-merged SPACs
, 92
M&A impact on
, 189–190
managers moral obligation
, 186
moral bases for determination of legitimacy
, 186
multiple
, 187
negative consequences
, 191
and organizations, relationship between
, 186
perceptions
, 38
relationship with
, 185–186
Standard deviation
, 75
Standard Industrial Classification (SIC)
, 101
Stock price, personal decision impact on
, 60
Strategic alliances (SAs)
, 2
Strategic fit
, 95, 116
Strategic investment appraisal decision-making process
, 67–68
approaches
balanced scorecard
, 70
benchmarking
, 72–74
real options analysis
, 70–71
technology roadmapping
, 71–72
value chain analysis
, 71
characteristics of
, 68–69
cognitive perspective of
, 75–77
complementary evaluation strategy, need for
, 69
financial performance factors
, 70
research on
, 78
types of
, 69
Strategic management
, 2, 12, 14, 117
accounting
, 8
ROT use in
, 10
Strategic pre-decision control mechanism
, 78
Stress management training
, 121
Sub-group discrimination
, 146
Subjective decision-making approach
, 69–70
Substantive conflicts
, 167
Symbolic conflicts
, 167
Takeover style effect on post-M & A workforce and profits
, 55
Technical skills training
, 121
Technology roadmapping process
, 71–72
Termination fee
, 39
Third-party dispute resolution
, 169
Time management
, 174–175
Todd, Sweeney
, 195
Tokyo Stock Exchange
, 41
Training of employees during M&As
, 120–123
initiatives for
alienation feeling among employee
, 125
employee commitment
, 123–125
Transaction cost economics (TCE)
, 7, 9–10
Transactions during M&A, study of training methods
research methodology
, 126
results
, 126–127
Trust
, 50
Turnover
, 31, 44, 51, 55, 118, 166
Uncertainty
, 167–169, 173–176
U.S. firms
, 40
U.S. Glass-Steagall Act of
, 1933, 41
US Inc
, 192–194
chairperson and CEO
, 195
deal with UK PLC, assessment of ethicality
, 199–201
institutional investors
, 196
portfolio managers
, 196
shareholders
, 196–197
suppliers
, 198–199
takeover of UK PLC
, 194–195
US PLC
, 192–195
board and senior managers
, 195–196
customers
, 198
employees reduction by
, 197
U.S. Tax Reform Act of
, 1986, 40
Utilitarianism
, 190
Valuation of firms
, 5, 9
Value chain analysis
, 71, 73–74
Venture capital investment
, 87–88
Vertical merger
, 54
Volatility
, 40
Wage alignment
, 45
Ward, Sarah
, 194–195, 198
- Prelims
- Alliances to Acquisitions: A Road Map to Advance the Field of Strategic Management
- Pre-M&A “Leadership”?: Might Behavioral Due Diligence Assessment be the Answer?
- The Decision to Retain and Reduce Human Resources in Mergers and Acquisitions
- Strategic Investment Appraisal: Multidisciplinary Perspectives
- Can SPACs Ensure M&A Success?
- Mergers and Acquisitions Revisited: The Role of Business Model Relatedness
- Training During Transitions: The Context of a Developing Economy
- Dissecting Post-Merger Integration Risk: The PMI Risk Framework
- Getting Beyond Culture Clashes: A Process Model of Post-Merger Order Negotiation
- A Stakeholder Framework for Evaluating the Impact of Mergers and Acquisitions
- Index