A balance model for evaluating firms for acquisition

A balance model for evaluating firms for acquisition

0.00 Avg rating0 Votes
Article ID: iaor19912000
Country: United States
Volume: 37
Issue: 3
Start Page Number: 331
End Page Number: 349
Publication Date: Mar 1991
Journal: Management Science
Authors: , ,
Keywords: decision
Abstract:

In recent years, the U.S. corporate world has been dominated by a spectacular spate of mergers and acquisitions. Firms are seeking out partners that will provde them the necessary leverage to achieve their various growth and diversification goals. Based on the balance model developed by Farquhar and Rao, this paper suggests a multi-attribute approach for evaluating acquisition partners. The appropriateness of this approach in the decision of one firm to acquire another firm is investigated using experimental methods. The context of the cosmetic industry is used in this empirical application. Results indicate that the balance model is quite suitable in describing the acquisition decision.

Reviews

Required fields are marked *. Your email address will not be published.