The prognostics of diversifying acquisitions

Article Abstract:

A possible explanation is provided for the discrepancy between the increase in the number of US diversified firms, and results from financial studies that suggest only weak support for creation of value in diversifying acquisitions. It is asserted that acquisition is the result of a group of associated strategic moves by the acquiring company to move into a new industry, in which case a substantial part of the gains from synergy could have been foreseen before the acquisition by the capital market. Support is lent to this argument by an event study of the stock market's response to the antecedents of IBM's recent acquisition of Rolm Inc.

Mergers, acquisitions and divestments, International Business Machines Corp., Diversification in industry, Industrial diversification, Rolm Corp.

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What they know vs. what they do: how acquirers leverage technology acquisitions

Article Abstract:

The methods to be followed by the companies for inter-firm knowledge transfer during acquisitions are presented.

United States, Management dynamics, Methods, Management, Knowledge management, Company business management, Leveraged buyouts, Technology transfer

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Prior performance characteristics of related and unrelated acquirers

Article Abstract:

The author relates acquisition strategies to firm and industry profitability.

Corporate Profits, Profit, Profits

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