To integrate or not to integrate ? complementarity, similarity, and acquisition value creation
AbstractIn this paper, the authors explain that relatedness is often associated with acquisition value creation without distinguishing between three underlying sources of synergy: business similarity, product complementarity and geographic complementarity. The authors argue that realizing value in acquisitions requires maching the type of relatedness with the appropriate degree of integration; specifically high integration for business similarity, medium integration for product complementarity and low integration for geographic complementarity. Empirical validation, broadly supporting their hypotheses comes from 88 M&As
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 814.
Length: 40 pages
Date of creation: 24 Jan 2006
Date of revision:
mergers and acquisitions; value creation; integration;
Find related papers by JEL classification:
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-29 (All new papers)
- NEP-BEC-2006-01-29 (Business Economics)
- NEP-COM-2006-01-29 (Industrial Competition)
- NEP-FIN-2006-01-29 (Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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