An approach to two-sided M&A fits based on a cross-efficiency evaluation with contrasting attitudes
Hai-Liu Shi,
Ying-Ming Wang (),
Sheng-Qun Chen and
Yi-Xin Lan
Additional contact information
Hai-Liu Shi: Fuzhou University
Ying-Ming Wang: Fuzhou University
Sheng-Qun Chen: Fuzhou University
Yi-Xin Lan: Fuzhou University
Journal of the Operational Research Society, 2017, vol. 68, issue 1, 41-52
Abstract:
Abstract Two-sided mergers and acquisitions (M&A) fits have been regarded as a critical step, which should always be taken by a bidder company when trying to identify suitable target companies prior to an M&A. This paper proposes an approach to two-sided M&A fits based on a cross-efficiency model with contrasting attitudes. In this approach, firstly, feasible M&A fits are screened using a preference function from an M&A fit matrix, according to the preferences of both the bidder companies and target companies in terms of efficiency and return to scale. Secondly, two-sided M&A fits are selected from a feasible M&A fit matrix, according to the value of cross-efficiency with contrasting attitudes. This allows for the existence of contrasting attitudes of peers toward an M&A fit, as opposed to the aggressive, benevolent or neutral cross-efficiency evaluation which consists of just one attitude (either aggressive, benevolent or indifferent). Finally, an illustrative example is given to explain the feasibility and validity of the two-sided M&A fit strategy.
Keywords: two-sided mergers and acquisitions (M&A) fits; data envelopment analysis; cross-efficiency evaluation with contrasting attitude; efficiency and RTS (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://link.springer.com/10.1057/s41274-016-0005-6 Abstract (text/html)
Access to full text is restricted to subscribers.
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:pal:jorsoc:v:68:y:2017:i:1:d:10.1057_s41274-016-0005-6
Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274
DOI: 10.1057/s41274-016-0005-6
Access Statistics for this article
Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook
More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().