Real options for international M&A

Mohammad Faisal Ahammad

Chapter 130 in Elgar Encyclopedia of Mergers and Acquisitions, 2026, pp 355-356 from Edward Elgar Publishing

Abstract: This chapter explores real options theory as a strategic approach to managing uncertainty in cross-border M&A. Real options advocate partial acquisitions or staged investments to mitigate risks while preserving flexibility for further expansion or exit. The chapter discusses exogenous uncertainties, pre-emption risks and their influence on ownership decisions. It emphasises leveraging low-commitment strategies in competitive markets while considering timing as a value determinant.

Keywords: Real options; Cross border; Partial acquisition; Pre-emption; Exogenous uncertainty (search for similar items in EconPapers)
Date: 2026
ISBN: 9781800880856
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