Quantifying operational synergies in a merger/acquisition

被引:62
作者
Gupta, D [1 ]
Gerchak, Y
机构
[1] Univ Minnesota, Dept Engn Mech, Minneapolis, MN 55455 USA
[2] Tel Aviv Univ, Dept Ind Engn, IL-69978 Tel Aviv, Israel
关键词
mergers and acquisitions; production and finance; newsvendor problem; capacity management;
D O I
10.1287/mnsc.48.4.517.209
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
Merger and acquisition activity has increased sharply in the last decade. It seems useful to have models that can help senior managers of bidder firms make informed decisions about the amount of premium, over the target's share prices prevailing prior to merger announcement, that can be justified on the basis of operational synergies. The goal of this article is to capture important parameters from the production side that have a bearing on the valuation of the target's shares. We show that the production characteristics of both the bidder and the target matter in a significant way. For example, if the bidder and target operate in independent markets, the bidder has flexible production facilities but the target's production facilities are inflexible, then an increase in the bidder's demand can make the target less attractive and lower the value of operational synergy.
引用
收藏
页码:517 / 533
页数:17
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