This paper applies a real option approach to analyze the optimal decisions of mergers, stock offers, and cash offers. We use the two-stage approach to investigate the optimal decisions of mergers and acquisitions. At the first stage, the merger company has to choose the target company to obtain the largest synergy, which comes from the increasing return to scale, improved performance, acquired R&D, and increased market power. At the second stage, the main work is to determine the takeover threshold (timing), exchange rate of stocks or bid premium under the three forms of mergers and acquisitions. We find that the increasing return to scale, improved performance, and increased market power will lower takeover threshold and speed up merger activity. Finally, the forms of mergers and acquisitions will affect the timing and the returns of the acquirer and acquiree. Cash offers will happen even later than mergers and stock offers. This thesis also constructs a model to study the multi-firms¡¦ merger strategies and derives the multi-firms¡¦ synergy value, timing and terms of merges. In addition, we study the effect of firms¡¦ competitive intensity, market power, fixed cost, and demand shocks on the decisions of merges. We find that the increased competitive intensity, increased market power, higher fixed cost, and lower demand shocks will enhance the motives of merges and accelerate merger activities.

Taiwan ¡¥s mergers and acquisitions activities are more and more frequent in recently. The transaction cases grow from 1999¡¦s seventh to 2005¡¦s fifty-one. Although in the past research, our nation scholars seldom pay attention to this topic. From 2002 to 2005 our nation important management Journal has only four articles. Therefore, Taiwan ¡¥s researchers have many research space to expand it. Prior research on M&A founded that in nation ¡¥s enterprises M&A success opportunity are more bigger than M&A in the across nation. For this reason, many scholars suggest the key success or fail factor is ¡§culture different¡¨. Beside this answer, I want to find the others factor by case study which is including BenQ Thunder Tiger and Yageo that will affect Taiwanese enterprises M&A European and American enterprises. Then Taiwanese enterprises which are horizontal M&A(M&A that take place within one industry, often between direct competitors)can reference the research result. The results indicate that: Merger and acquire between European and American famous enterprise often over reliable result in due diligence not exactly. Thinking difference and nation superiority are main reason which cause conflict between acquire and acquired firm. Taiwanese enterprises generally do not take ground for human due diligence, Taiwanese enterprises which lack of international people are not good for postmerger integration. Mergers and acquires strategy is the least choice to enter overseas market.

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The dawn of international banking has already sparked some of the most well known mergers in the financial industry. Following the recent merger waves of the major developed economies, Taiwan¡¦s industry also engages merger and acquisitions to pursue external growth. Firms may merge for various reasons and generates totally different result in shareholder¡¦s wealth. Thus, capture the factors which drive the merger activity is very critical issue to all the participants of Taiwan¡¦s equity market. The objective of this study is to analyze the determents of target selection in the merger and acquisition activity in Taiwan¡¦s financial industry. The subject what the research are going to study and development. There is acquired Cooperative Association what characteristics are owned. Logit regression is utilized to investigate a sample of 12 listed firms which engaged mergers after the government has passed the Financial Merger Institutions Law over the period from 2000 to 2007. Consistent with literature of merger and acquisitions, the empirical result suggests that the firms with weaker debt structure, good loan quality and Capital Adequacy, to become good targets.

Abstract Mergers and acquisitions (M&A) are important management tools of chief executive officers (CEOs.) The benefits of M&A include fast expanding production capacity, acquiring technical patents, overcoming the entry of obstacles, grasping markets, taking over talents, generating the synergy of operation and finance, adjusting product mix or reducing production capacity any time during the recession of markets. Steel industry itself has the character of benefits in economical scale. Therefore, Mittal Steel Company led to hand over its successful experience unceasingly in the recent year, causing an international tide of M&A. In the recent emerging China¡¦s economic system, China¡¦s steel industry was integrated under the guide of national policy. Lots of small steel plants became international leading steel producers. This is contributed to the M&A rendering the company¡¦s scale large, increasing international visibility and bringing people¡¦s notice to its talks and behaviors. Owing to quite high risks of M&A itself, steel industry must grasp the key success factor so as to reduce the risks of operation. Due to the difference of every industry, every company and outside environment, each of their positions in the industrial value chain is also different. Therefore, the successful factors of each company¡¦s M&A are somewhat different, too. This study aims at hoping to probe the successful factors of steel industry¡¦s M&A by case study, as well as to understand the follows: the status of Taiwan¡¦s steel industry, the difficulty of M&A in Taiwan¡¦s industry, the successful factors of steel industry and the generated effect of steel industry¡¦s M&A. The result of this study shows that the relationship between China and Taiwan has been closer and closer. Taiwan¡¦s steel producers have to grasp the trend of changes of China¡¦s steel plants so as to prevent error decision making. As for the successful factors of steel industry¡¦s M&A, the first priority of conditions is to obtain the top management support and to be executed by an experienced teamwork of M&A so that the M&A experience can be handed over by cumulative knowledge. Since the statistics shows that the percentage of M&A success is small, it has better to evaluate the worst situation prior to the job¡¦s execution as well as to set a bottom line of loss in order to flexibly dispose the changes of situation at any time and to make the M&A easier to success.

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<p>Acquisitions are considered to be the ultimate form of corporate growth in today’s increasingly complex and global business economy. There is a significant lack of research done in understanding the growth of I.T. SMEs by means of acquisitions. All previous research concerning acquisitions has focused mostly on large sized organizations, involved in cross national operations. SMEs do not compete in an international arena like multinational corporations, who have already inherited a culture of accommodating acquired firms and achieving synergy. Therefore the question here arises as to how SMEs pursue growth via acquisitions despite having limited resources and capabilities.</p><p> </p><p><strong>Purpose:</strong> The purpose of this thesis is to study acquisition growth strategy of two I.T. firms (SYSteam AB and Sigma AB) which have grown from SMEs to large firms by means of acquisitions.</p><p> </p><p><strong>Method:</strong> In order to fulfill the purpose of this study the authors conducted a qualitative case study of two I.T. firms. The authors used interview as the data collection method.</p><p> </p><p><strong>Results/conclusions: </strong>There are many different factors which lead a firm to pursue acquisitions. Increased market share, proximity to key customers and entrepreneurial nature of the founders were the main ones. Acquisition brings about numerous synergies and integration is a key to capitalizing upon these synergies. Acquisition induces entrepreneurial orientation and facilitates the emergence of acquisition capabilities within the acquiring firm.</p><p> </p>

Thesis (doctoral)--Universität St. Gallen, 2003.

Thesis (doctoral)--Universität St. Gallen, 2003.

This thesis investigates how CEO risk taking incentives related to compensation in the form of executive stock options affect the decision to engage in merger and acquisition (M&A) activities with particular attention to same-industry versus cross-industry acquisitions. Risk taking incentives increase the propensity of M&As, especially for same-industry M&As. Furthermore, risk taking incentives increase the likelihood of cash payment for both same and cross-industry acquisitions. We do not find a significant direct stock price response difference between same-industry and cross-industry acquiring firms. The market responds favorably when risk taking incentives are higher for both same-industry acquisitions and cross-industry takeovers. We further find that the acquiring firm’s post-acquisition cash flow volatility is also positively related to risk taking incentives for both same- and cross-industry M&As.