To integrate or not to integrate ? complementarity, similarity, and acquisition value creation

Akbar Zaheer, Xavier Castaner () and David Souder

No 814, HEC Research Papers Series from HEC Paris

Abstract: In this paper, the authors explain that relatedness is often associated with acquisition value creation without distinguishing between three underlying sources of synergy: business similarity, product complementarity and geographic complementarity. The authors argue that realizing value in acquisitions requires maching the type of relatedness with the appropriate degree of integration; specifically high integration for business similarity, medium integration for product complementarity and low integration for geographic complementarity. Empirical validation, broadly supporting their hypotheses comes from 88 M&As

Keywords: mergers and acquisitions; value creation; integration (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2006-01-24
New Economics Papers: this item is included in nep-bec, nep-com and nep-fin
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.hec.fr/hec/fr/professeurs_recherche/upload/cahiers/CR814.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:0814

Access Statistics for this paper

More papers in HEC Research Papers Series from HEC Paris HEC Paris, 78351 Jouy-en-Josas cedex, France. Contact information at EDIRC.
Bibliographic data for series maintained by Antoine Haldemann ().