This paper presents a mathematical model for components/parts unification (CPU) policy. This model considers two components/parts that are functionally interchangeable but purchased from suppliers with different price...This paper presents a mathematical model for components/parts unification (CPU) policy. This model considers two components/parts that are functionally interchangeable but purchased from suppliers with different prices and quality characteristics. Because of the buyer's quality preference and suppliers' discount rates for bulky purchases, the model assists the procurement manager to determine how best to purchase the components/parts to meet its demand while minimizing the total acquisition costs.展开更多
This study examines the factors that affect the performance of foreign acquiring firms in Chinese M&As (mergers and acquisitions) market. Comparing between overseas Sino-Group and Anglo-Group, this study found that...This study examines the factors that affect the performance of foreign acquiring firms in Chinese M&As (mergers and acquisitions) market. Comparing between overseas Sino-Group and Anglo-Group, this study found that familiarity and location were the most important factors influencing performance of M&A transactions in China. It also found that unrelated M&A deals should be merged with familiarity for gaining positive acquisition performance. The total sample used in this study was 3,442 cases from October 1980 to March 2005. Because this period included all deals of M&As after the opening of Chinese market in China. The authors' finding provided a more universal explanation in the cross-border M&As in China.展开更多
The obviously ever increasing number of corporate acquisitions in recent decades has improved the general knowledge and awareness of due diligence for both the industry and research. In the current challenging busines...The obviously ever increasing number of corporate acquisitions in recent decades has improved the general knowledge and awareness of due diligence for both the industry and research. In the current challenging business environment, acquisitions face a higher degree of risk profiles, especially cross-border acquisitions in the emerging markets. Conducting a thorough due diligence investigation in the context of an acquisition is more important now than ever. In a broad analysis, this paper researches the key risk factors in the acquisition process and their assessment within a due diligence audit in the acquisition phase. The task of this paper is to match the academic and practical view in order to give a more complete understanding of risk factors to be covered in due diligence audit. The starting point is the research of academic findings which basically concentrate on common approaches considering financial, legal, commercial, and some other issues in domestic acquisitions and in developed countries. In contrast, this paper considers risk factors in cross-border and emerging markets transactions. In addition, a number of business consultants publish studies based on surveys on this topic which reflect typical risk factors based on experience of their customers being involved in cross-border acquisitions. Their risk assessment consists of specific regulatory, political, and other factors, which may lead to commercial and reputational impediments in cross-border acquisitions. The outcome of the comparison is a comprehended list of evaluated risk factors, whereby the academic findings are complemented and supported by the practical experience in the business consultant's studies. Moreover, the practical approach points to the fact that due diligence scope needs to be suited to the dynamics of the markets. The comparison and the comprehended list of evaluated risk factors call for a more integrated system of due diligence and show herein the research deficit. Hence, the novelty is the compendium of evaluated risk factors which should be assessed in the pre-acquisition phase. The originality of the paper is given by a unique analysis of academic work about acquisition due diligence literature and consultant studies from anonymized practical experience based on insider information.展开更多
Outward Foreign Direct Investment (OFDI) from emerging economies has begun to increase significantly and has been growing at a faster pace than Foreign Direct Investment (FDI) from the developed world. This resear...Outward Foreign Direct Investment (OFDI) from emerging economies has begun to increase significantly and has been growing at a faster pace than Foreign Direct Investment (FDI) from the developed world. This research seeks to assess the impact of Chinese acquisitions and their implications for the "Made in Italy" luxury sector and its firms. This paper presents a cross-case analysis of two Chinese acquisitions in order to provide some in-depth insights into the influences and the motives driving Chinese firms to invest in the luxury Made in Italy sector, the patterns and modes of the Chinese acquisitions as well as the competitive strategies and the distinctive challenges that both investors and acquired firms have to face. From the findings, it emerges that both the investor and the acquired firm need to overcome several key challenges to be mutual benefits from the acquisition.展开更多
The importance of stakeholder relationship management for successful integration in post-merger management is not doubted. The establishment of a new powerful trend in investments produces strategic shifts in strategi...The importance of stakeholder relationship management for successful integration in post-merger management is not doubted. The establishment of a new powerful trend in investments produces strategic shifts in strategic management. Shareholder wealth maximization way of thinking is changing to stakeholder wealth maximization where a company's value management system is based not only on economic profit maximization, but also on environmental, social, and governance (ESG) maximization. There is especially a high need for a management system that can be used by mergers and acquisitions (M&A) practitioners during integration process. There is a critical need for metrics which can trace the interests of all stakeholders, because to achieve success in integration, it is no longer acceptable for management to focus solely on the needs of one or two stakeholder groups. In this article, the authors have introduced two frameworks: sun cube and stakeholder relationship matrix. These tools can be useful in mergers and acquisitions (M&A) process for conducting a stakeholder analysis.展开更多
The decrease in business activity and the fall in the production volume in the sectors of economy relying on long-term crediting is characteristic feature of the modern recessions. The pessimistic expectations of entr...The decrease in business activity and the fall in the production volume in the sectors of economy relying on long-term crediting is characteristic feature of the modern recessions. The pessimistic expectations of entrepreneurs concerning product demand leads to falling direct investment into business despite unlimited investment opportunities due to the developed capital markets nowadays. As a result it has created the opportunity for the development of such business restructuring types as mergers and acquisitions. Potential investors are different and their investment motivation is different, but the goal is the same--to increase the value of the business and its efficiency as a result of mergers and acquisitions. Utilizing borrowed capital for acquisitions of enterprises has many advantages. However, purchasable enterprises are exposed to several financial risk factors.展开更多
Mergers & acquisitions (M&As) are important strategic instruments, yet nearly half of all transactions fail, often resulting in disastrous write-offs and losses for corporations and financing institutions alike - ...Mergers & acquisitions (M&As) are important strategic instruments, yet nearly half of all transactions fail, often resulting in disastrous write-offs and losses for corporations and financing institutions alike - despite promising prospects upfront. Applied research has been trying to find a "panacea" to prevent or at least predict M&A failure, investigating motives, synergies and performance. Despite the growing unease with the stationary explanatory models in literature, research has only marginally focused on the concept of time, with inquiries into market timing and integration speed. Yet other timing concepts have been neglected in concepts so far despite early empirical evidence for their existence. The purpose of this paper is thus to identify and elaborate on the importance of further relevant theories of timing. For this, and true to the exploratory nature of the topic, the authors have chosen a qualitative comparative case study design based on existing case reports which are investigated for narrations highlighting timing concepts. This study reveals six factors which have a crucial impact on the M&A outcome: time of acquisition, M&A duration in its entirety, M&A sequence, synergy chronology, frequency of acquisitions and time to step back. It contributes to theory and practice in outlining the careful attention that needs to be paid in planning in these factors to enhance the chances of a successful M&A transaction.展开更多
Since the nineteen nineties, Chinese economic grows rapidly. Chinese enterprises have become an important force in the world economic growth. At the same time enterprise growth has been accompanied by M & A, the succ...Since the nineteen nineties, Chinese economic grows rapidly. Chinese enterprises have become an important force in the world economic growth. At the same time enterprise growth has been accompanied by M & A, the success ofM & A can bring great leap and growth for the enterprise. As for Chinese enterprise, today is an important period of mergers and acquisitions, but the real success ofM & A is less. Through the analysis of the causes for the failure ofM & A enterprise, some research results suggest the following three reasons are the major. First is the ignoring differences in M & A enterprises culture, second is the cultural conflict between no effective solution for mergers and acquisitions, and the third is not able to integrate the cultural reasonably.展开更多
Since the nineteen nineties, Chinese economic grows rapidly. Chinese enterprises have become an important force in the world economic growth. At the same time enterprise growth has been accompanied by M & A, the succ...Since the nineteen nineties, Chinese economic grows rapidly. Chinese enterprises have become an important force in the world economic growth. At the same time enterprise growth has been accompanied by M & A, the success ofM & A can bring great leap and growth for the enterprise. As for Chinese enterprise, today is an important period of mergers and acquisitions, but the real success ofM & A is less. Through the analysis of the causes for the failure ofM & A enterprise, some research results suggest the following three reasons are the major. First is the ignoring differences in M & A enterprises culture, second is the cultural conflict between no effective solution for mergers and acquisitions, and the third is not able to integrate the cultural reasonably.展开更多
Mergers and acquisitions (M&A) are the important methods to quickly acquire external resources, achieve the economies of scale and the economies of scope, improve market share, and expand the scale of enterprise, w...Mergers and acquisitions (M&A) are the important methods to quickly acquire external resources, achieve the economies of scale and the economies of scope, improve market share, and expand the scale of enterprise, while M&A performance is an important index to measure if enterprise M&A is successful. In this paper, the influence of entrepreneurs' political connection on the M&A driving factors and M&A efficiency of the enterprises with different property rights are analyzed using 357 mergers and acquisitions of China' s 189 listed companies in 2005-2011 as samples based on the distinction between political connection and the nature of enterprise property rights. The results show that the political connection plays a very significant positive influence on the M&A performances of the central state-owned enterprises and private enterprises, but exerts a very significant negative influence on the local state-owned enterprises; the intensity of entrepreneurs' political connection also plays a certain influence on enterprise merger and acquisition, and the central political connection and the local political connection are significantly different in the influence on the enterprise M&A performance.展开更多
Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined pa...Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined party, some include the deferred income tax liabilities and deferred tax assets, there are not included. The merging party merger resulting combined balance in the merging process may affect the current income tax and deferred income tax, but also may not have any effect. This paper goes through the application case on enterprises merger' merging party or purchase party tax treatment to carry on analysis, which provides the major reference for accounting theory and accounting practice circles.展开更多
The merger of the pension not only in relation to the social justice, but also the relationship between the construction of social security system, pensions merger is beyond doubt. Pension dual track the biggest drawb...The merger of the pension not only in relation to the social justice, but also the relationship between the construction of social security system, pensions merger is beyond doubt. Pension dual track the biggest drawback is that a significant loss of fairness, the gap between different groups of pension is too wide, causing social conflicts. The merger of the pension has be imperative. Therefore, it is necessary to establish and perfect the system of the civil service pension insurance legal mandatory occupational pension system, strengthen the basic social pension, broaden the channels for pension investment, reform organs and institutions pension system and pension system Retbrm and civil service pay rise, in order to promote the reform of the civil service pension system. The merger of the pension reform is scientific and reasonable, healthy and orderly and can achieve a smooth transition.展开更多
文摘This paper presents a mathematical model for components/parts unification (CPU) policy. This model considers two components/parts that are functionally interchangeable but purchased from suppliers with different prices and quality characteristics. Because of the buyer's quality preference and suppliers' discount rates for bulky purchases, the model assists the procurement manager to determine how best to purchase the components/parts to meet its demand while minimizing the total acquisition costs.
文摘This study examines the factors that affect the performance of foreign acquiring firms in Chinese M&As (mergers and acquisitions) market. Comparing between overseas Sino-Group and Anglo-Group, this study found that familiarity and location were the most important factors influencing performance of M&A transactions in China. It also found that unrelated M&A deals should be merged with familiarity for gaining positive acquisition performance. The total sample used in this study was 3,442 cases from October 1980 to March 2005. Because this period included all deals of M&As after the opening of Chinese market in China. The authors' finding provided a more universal explanation in the cross-border M&As in China.
文摘The obviously ever increasing number of corporate acquisitions in recent decades has improved the general knowledge and awareness of due diligence for both the industry and research. In the current challenging business environment, acquisitions face a higher degree of risk profiles, especially cross-border acquisitions in the emerging markets. Conducting a thorough due diligence investigation in the context of an acquisition is more important now than ever. In a broad analysis, this paper researches the key risk factors in the acquisition process and their assessment within a due diligence audit in the acquisition phase. The task of this paper is to match the academic and practical view in order to give a more complete understanding of risk factors to be covered in due diligence audit. The starting point is the research of academic findings which basically concentrate on common approaches considering financial, legal, commercial, and some other issues in domestic acquisitions and in developed countries. In contrast, this paper considers risk factors in cross-border and emerging markets transactions. In addition, a number of business consultants publish studies based on surveys on this topic which reflect typical risk factors based on experience of their customers being involved in cross-border acquisitions. Their risk assessment consists of specific regulatory, political, and other factors, which may lead to commercial and reputational impediments in cross-border acquisitions. The outcome of the comparison is a comprehended list of evaluated risk factors, whereby the academic findings are complemented and supported by the practical experience in the business consultant's studies. Moreover, the practical approach points to the fact that due diligence scope needs to be suited to the dynamics of the markets. The comparison and the comprehended list of evaluated risk factors call for a more integrated system of due diligence and show herein the research deficit. Hence, the novelty is the compendium of evaluated risk factors which should be assessed in the pre-acquisition phase. The originality of the paper is given by a unique analysis of academic work about acquisition due diligence literature and consultant studies from anonymized practical experience based on insider information.
文摘Outward Foreign Direct Investment (OFDI) from emerging economies has begun to increase significantly and has been growing at a faster pace than Foreign Direct Investment (FDI) from the developed world. This research seeks to assess the impact of Chinese acquisitions and their implications for the "Made in Italy" luxury sector and its firms. This paper presents a cross-case analysis of two Chinese acquisitions in order to provide some in-depth insights into the influences and the motives driving Chinese firms to invest in the luxury Made in Italy sector, the patterns and modes of the Chinese acquisitions as well as the competitive strategies and the distinctive challenges that both investors and acquired firms have to face. From the findings, it emerges that both the investor and the acquired firm need to overcome several key challenges to be mutual benefits from the acquisition.
文摘The importance of stakeholder relationship management for successful integration in post-merger management is not doubted. The establishment of a new powerful trend in investments produces strategic shifts in strategic management. Shareholder wealth maximization way of thinking is changing to stakeholder wealth maximization where a company's value management system is based not only on economic profit maximization, but also on environmental, social, and governance (ESG) maximization. There is especially a high need for a management system that can be used by mergers and acquisitions (M&A) practitioners during integration process. There is a critical need for metrics which can trace the interests of all stakeholders, because to achieve success in integration, it is no longer acceptable for management to focus solely on the needs of one or two stakeholder groups. In this article, the authors have introduced two frameworks: sun cube and stakeholder relationship matrix. These tools can be useful in mergers and acquisitions (M&A) process for conducting a stakeholder analysis.
文摘The decrease in business activity and the fall in the production volume in the sectors of economy relying on long-term crediting is characteristic feature of the modern recessions. The pessimistic expectations of entrepreneurs concerning product demand leads to falling direct investment into business despite unlimited investment opportunities due to the developed capital markets nowadays. As a result it has created the opportunity for the development of such business restructuring types as mergers and acquisitions. Potential investors are different and their investment motivation is different, but the goal is the same--to increase the value of the business and its efficiency as a result of mergers and acquisitions. Utilizing borrowed capital for acquisitions of enterprises has many advantages. However, purchasable enterprises are exposed to several financial risk factors.
文摘Mergers & acquisitions (M&As) are important strategic instruments, yet nearly half of all transactions fail, often resulting in disastrous write-offs and losses for corporations and financing institutions alike - despite promising prospects upfront. Applied research has been trying to find a "panacea" to prevent or at least predict M&A failure, investigating motives, synergies and performance. Despite the growing unease with the stationary explanatory models in literature, research has only marginally focused on the concept of time, with inquiries into market timing and integration speed. Yet other timing concepts have been neglected in concepts so far despite early empirical evidence for their existence. The purpose of this paper is thus to identify and elaborate on the importance of further relevant theories of timing. For this, and true to the exploratory nature of the topic, the authors have chosen a qualitative comparative case study design based on existing case reports which are investigated for narrations highlighting timing concepts. This study reveals six factors which have a crucial impact on the M&A outcome: time of acquisition, M&A duration in its entirety, M&A sequence, synergy chronology, frequency of acquisitions and time to step back. It contributes to theory and practice in outlining the careful attention that needs to be paid in planning in these factors to enhance the chances of a successful M&A transaction.
文摘Since the nineteen nineties, Chinese economic grows rapidly. Chinese enterprises have become an important force in the world economic growth. At the same time enterprise growth has been accompanied by M & A, the success ofM & A can bring great leap and growth for the enterprise. As for Chinese enterprise, today is an important period of mergers and acquisitions, but the real success ofM & A is less. Through the analysis of the causes for the failure ofM & A enterprise, some research results suggest the following three reasons are the major. First is the ignoring differences in M & A enterprises culture, second is the cultural conflict between no effective solution for mergers and acquisitions, and the third is not able to integrate the cultural reasonably.
文摘Since the nineteen nineties, Chinese economic grows rapidly. Chinese enterprises have become an important force in the world economic growth. At the same time enterprise growth has been accompanied by M & A, the success ofM & A can bring great leap and growth for the enterprise. As for Chinese enterprise, today is an important period of mergers and acquisitions, but the real success ofM & A is less. Through the analysis of the causes for the failure ofM & A enterprise, some research results suggest the following three reasons are the major. First is the ignoring differences in M & A enterprises culture, second is the cultural conflict between no effective solution for mergers and acquisitions, and the third is not able to integrate the cultural reasonably.
文摘Mergers and acquisitions (M&A) are the important methods to quickly acquire external resources, achieve the economies of scale and the economies of scope, improve market share, and expand the scale of enterprise, while M&A performance is an important index to measure if enterprise M&A is successful. In this paper, the influence of entrepreneurs' political connection on the M&A driving factors and M&A efficiency of the enterprises with different property rights are analyzed using 357 mergers and acquisitions of China' s 189 listed companies in 2005-2011 as samples based on the distinction between political connection and the nature of enterprise property rights. The results show that the political connection plays a very significant positive influence on the M&A performances of the central state-owned enterprises and private enterprises, but exerts a very significant negative influence on the local state-owned enterprises; the intensity of entrepreneurs' political connection also plays a certain influence on enterprise merger and acquisition, and the central political connection and the local political connection are significantly different in the influence on the enterprise M&A performance.
文摘Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined party, some include the deferred income tax liabilities and deferred tax assets, there are not included. The merging party merger resulting combined balance in the merging process may affect the current income tax and deferred income tax, but also may not have any effect. This paper goes through the application case on enterprises merger' merging party or purchase party tax treatment to carry on analysis, which provides the major reference for accounting theory and accounting practice circles.
文摘The merger of the pension not only in relation to the social justice, but also the relationship between the construction of social security system, pensions merger is beyond doubt. Pension dual track the biggest drawback is that a significant loss of fairness, the gap between different groups of pension is too wide, causing social conflicts. The merger of the pension has be imperative. Therefore, it is necessary to establish and perfect the system of the civil service pension insurance legal mandatory occupational pension system, strengthen the basic social pension, broaden the channels for pension investment, reform organs and institutions pension system and pension system Retbrm and civil service pay rise, in order to promote the reform of the civil service pension system. The merger of the pension reform is scientific and reasonable, healthy and orderly and can achieve a smooth transition.