Book Description
A powerful guide for seeking out the best acquisition and merger targets
As increasingly more companies look to mergers and acquisitions (M&As) as a source of new growth and revenue, there is an even greater chance that these M&As will go bad. This insightful guide focuses on one of the most often debated and key issues in mergers and acquisitions-why some deals fail miserably and why others prosper. It provides a complete road map for what potential buyers should look for when picking a target and what characteristics of sellers they should steer clear of, as well as pitfalls to avoid during the M&A process. Real-world examples are provided of high-profile failures-Quaker Oats, United Airlines, Sears, and Mattel-and high-profile successes-General Electric and Cisco.
Patrick A. Gaughan (New York, NY) is President of Economatrix Research Associates and a professor of Economics and Finance at the College of Business, Fairleigh Dickinson University. He is actively engaged in the practice of business valuations for mergers and acquisitions, as well as other related applications.
From the Inside Flap
As companies increasingly look to mergers and acquisitions as a source of new growth and revenue in today's competitive environment, it's vital to learn from the past and avoid costly merger mistakes. Company leaders need reliable answers to such questions as: Why do some mergers fail miserably while others prosper? Is there a common denominator for the failures? What role do CEOs play in the success/failure equation? Can businesses learn from merger mistakes?
Mergers: What Can Go Wrong and How to Prevent It answers these questions and more.
Complete with numerous real-world case histories of high-profile, high-stakes failures and successes, this book objectively analyzes previous mergers and explains: What potential buyers should look for when picking a target What potential buyers should look out for when picking a target—characteristics to steer clear of Pitfalls to avoid during the merger and acquisition process
Mergers identifies key characteristics of successful mergers by companies such as GE and Cisco, and it also provides pitfalls to avoid by examining mergers that failed, including AT&T, DaimlerChrysler, WorldCom, Quaker Oats, United Airlines, Sears, and Mattel. All research is illustrated with informative exhibits and tables to help readers grasp important concepts.
Mergers extracts important findings from a wide variety of pragmatic research that managers and directors can apply to avoid failed deals. Presented in an easy-to-understand manner, readers get the benefit of the bottom-line conclusions from years of research in this area. It also shows how companies should be valued so as to avoid overpaying. The book is a must-read for all those contemplating buying or merging with another company. In addition, the corporate governance of mergers and acquisitions is carefully analyzed.
If you're a CEO, CFO, COO, financial manager, consultant, or board member of a company that might be involved in a merger or acquisition; if you're a stockholder who wants to determine if a merger or acquisition is really in your best interest; if you're a businessperson who needs to understand mergers and acquisitions in order to better position or protect your company—this is a must-read! It's the risk-free way to learn from others' merger-related mistakes.
About the Author
PATRICK GAUGHAN, PhD, is President of Economatrix Research Associates, Inc., and Professor of Economics and Finance at the College of Business, Fairleigh Dickinson University. He performs business valuations for mergers and corporate restructurings, and serves as a consultant for several Fortune 500 companies. He has authored numerous articles and books, including Mergers, Acquisitions, and Corporate Restructurings (published by Wiley), which was named the Association of American Publishers Best Book of the Year in Accounting for 1996.
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