Mergers and Acquisitions: Escalation of Commitment Bias
Escalation of commitment bias is particularly prevalent, in high risk strategic decisions, such as mergers and acquisitions (M&A).
M&A
M&A integration: How to successfully integrate strategic acquisitions
Mergers and acquisitions are vital to the growth of many businesses, yet roughly half of all M&As fail to create value or wealth for shareholders of the acquirers (Gaughan, 2017; Whitaker, 2012). One major reason is that firms tend to treat post-merger integration as a mechanical process that occurs after the transaction is closed.
Breaking Deal With E*Trade Would Cost Morgan Stanley ‘$375 million’
Morgan Stanley’s E*Trade acquisition could mark the biggest one by a major U.S. bank post the financial crisis of 2007-2009.
First Quarter Of 2018 Show The Strongest Growth In M&As In The Global Markets
World events, decisions of leaders, tax reformations, trade tariffs, along with confidence rise in corporate sector have pushed companies to undertake deals with “strong strategic sense”, although the investors seem reluctant in big scale acquisitions.
Deutsche Telekom raises 2017 outlook
Unperturbed by the collapse of the mega deal between T-Mobile US and Sprint Corp, Deutsche Telekom’s third quarter earnings have beaten analysts’ expectations.
China-backed Canyon Bridge manages to buy British tech company in its bid to gain advanced chip design knowhow
U.S. antitrust authorities had barred China-backed Canyon Bridge from acquiring U.S.-based Lattice Semiconductor Corp citing national concerns.
BASF to buy BAYER’s seed and herbicide business for $7 billion
For BASF, while this deal represents a fantastic opportunity, it is howering entering into a new territory, since it has avoided the seed business and has insteasd focused on research and licensing its tech to seed developers.
Bain Capital’s long reaching strategic moves paying dividends in Japan
Bain Capital has been patiently networking and cultivating connections in Japan. While it spent 3 years to develop a relationship with ADK, long before Toshiba’s nuclear business went kaboom, Bain had started discussions with Toshiba around their semiconductor business.
Qualcomm offers concession to ease concerns raised by the European Commission on its acquisition of NXP semiconductors
The European Commission’s concerns stem from apprehensions that the U.S. chipmaker could use incentives as a ploy to squeeze out rivals and raise prices as well as Qualcomm bringing about changes in NXP’s intellectual property licensing model.
Unilever’s acquisition of Carver Korea will help boost its footprint in the beauty and personal care industry in South Korea.
The deal is aimed at tapping the fast growing skincare business in South Korea.
Hong-Kong’s AIA Group set to acquire Commonwealth Bank of Australia
Australia’s insurance market is an attractive proposition for foreign insurers given the size of its population and the growth rate of its economy.
The evolution of jobs in corporate finance: towards a better finance?
The upheavals in the financial world since the 2008 depression have increased the importance of the role of financial advisors. With uncertainty still prevalent in the market, business activities like merger and acquisitions for example are being undertaken with greater caution. A careful introspection of possible investments is critical in retaining and growing wealth.
How Duff & Phelps became a leader in valuation services
Through the acquisition of American Appraisal Associates, in early 2015, Duff & Phelps killed two birds with one stone. On the one hand, the almost-centenary advisory firm became the largest provider of valuation services in the world. On the other hand, Duff & Phelps is now well positioned to take advantage of the reform of the European audit market, encroaching at the same time on the Big Four’s territory.
Aetna will create history with the acquisition of Humana Inc
With the U.S Supreme court giving Obamacare the green signal, the healthcare insurance market is seeing some M&A in its wake. Subject to the scrutiny of the Antitrust Commission, if the Aetna and Humana deal goes through, it will be the largest ever insurance deal in history.
