Bachelor-Arbeit Univ. St. Gallen, 2008.

Master-Arbeit Univ. St. Gallen, 2008.

Master-Arbeit Univ. St. Gallen, 2008.

Universität Halle-Wittenberg, Diss., 2005.

Universiẗat, Diss., 2008--Erlangen-Nürnberg.

To acquire, or not to acquire? The debate rages on. Companies have been acquiring other companies for centuries, and still, both scholars and practitioners cannot agree on whether acquisitions create and destroy shareholder value. The contradictory results of research into the value creation or value destruction nature of acquisitions has not dampened the will of those corporate executives with a penchant for buying other firms. Globally, and albeit affected by the general well being of the economy, the value and quantities of acquisitions continues to show strong growth. It is largely accepted that large acquisitions are executed as strategic initiatives which should yield benefits in the medium to long‐term. Using event study methodology with a control portfolio model, this study aimed to evaluate the validity of this claim and ascertain if, at the 5% confidence interval, 14 large acquisitions by companies listed on the JSE achieved significant share price gains in the 378 trading days (18 months at an average of 21 trading days per month) after the acquisition. This study concluded that large acquisitions had statistically; no impact on the long term share price returns of JSE listed acquiring companies. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

This study explores the extent to which brand features in the due diligence process preceding mergers and acquisitions. Current literature suggests that when brand elements are integrated efficiently, success levels of the merge improve. Brand is considered broadly with the focus on corporate branding and therefore incorporates elements of imagery, reputation, culture, employees and external stakeholders. Brand equity, which comprises the assets and liabilities of the brand is seen as a source of competitive advantage. As such brand is a critical element which could certainly be incorporated formally into the pre-deal due diligence process. The research questions are to: Investigate and explore to what extent the concept of brand is considered in M&A due diligence in the South African context. Evaluate and explain the differing roles that the selected corporate advisors put forward in the M&A market regarding brand in South Africa. Investigate how M&A practitioners are operating in terms of IFRS 3 legislation which requires transparency in disclosure of intangible assets following a merge. The findings reveal that corporate advisors generally do not incorporate brand elements in the due diligence process. Their focus remains predominantly financial in assessing the cash-flows implicit of the brand in their analysis.A typology of the services and roles of corporate advisors is developed in terms of their approach to M&A consulting. Reporting in terms of intangible assets required by IFRS 3 convention is investigated and the findings confirm that transparency of valuation is not adequately revealed. Recommendations to the stakeholders involved in M&A include the incorporation of a formal marketing due diligence process to improve disclosure levels, to gain a deeper insight into marketing drivers of cash-flow, to gain a better understanding of inherent marketing risks and to improve valuation practice. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

Mergers and acquisitions (M&A) can be either “hostile” or “friendly” in nature. This study looks at the corresponding long-term investment performance of “hostile” and “friendly” takeovers within the mining sector, pre and post the takeover of targets, with the aim to investigate whether there are statistically significant differences about which the investor community should be aware.36 months of monthly share price performance, pre and post first formal merger/takeover announcement date, are studied, for each acquirer is compared with the bourse mining index to calculate the percentage time the acquirer outperforms the market (mining index). Research of the major mining stock exchanges of the world – New York, Toronto, Australia, London and Johannesburg – reveals that the investment performances of “hostile” acquiring mining companies, pre first formal announcement date, are statistically significantly greater than post first formal announcement date. No statistically significant difference was found pre and post first announcement date for “friendly” acquiring mining companies. Although clear differences in post first formal announcement date investment performance are noted between “hostile” acquirers and “friendly” acquirers, there is no statistically significant difference between the investment performances of “friendly” versus “hostile” acquirers. / Dissertation (MBA)--University of Pretoria, 2006. / Gordon Institute of Business Science (GIBS) / unrestricted

Using a sample of 45,283 firm year observations between 1993–2012, I examine the influence of different types of diversification and M&A accounting on firm value. I find that there are different explanations for earlier variations among documented discounts. I find different value effects for geographical and industrial diversification. These effects vary over time, with decreasing discounts for geographical diversification. Furthermore, I find different value effects of M&A accounting between industries. Controlling for firm fixed effects leads to insignificant results for most regressions, which indicates that underlying firm characteristics play an important role in the determination of the discount. Together, these findings explain earlier documented differences in the literature on the diversification discount.

The effectiveness of traditional due diligence practices and whether they contribute to Merger and Acquisition (M&A) success or failure is an ongoing debate in finance research. This research report contributes to the debate by examining the effectiveness of traditional due diligence using a qualitative research approach. A dataset of traditional due diligence practices was compiled from the literature, which formed the basis for an interview which was conducted with corporate finance practices. The findings indicate that the traditional due diligence process is considered to be an evolving process, where due diligence practices of the last decade are considered to be significantly different from the due diligence required in acquisitions today. Due diligence is also considered to be indispensable, and its scope and importance underestimated. Furthermore, any perceived deficiency in a due diligence is not necessarily in concept, but rather in execution, with excessive focus on the accounting and legal aspects of a M&A, while neglecting the macro-environment, marketing, production, management and information systems. It is also concluded that most stakeholders have understood that failure to carry out proper due diligence could be financially damaging to the parties transacting. In an attempt to determine what due diligence means for the current as well as the future, this study uncovers a critical trend in the forms and manner of flawed due diligence practices and paves the way to a more strategic due diligence, which are useful for practitioners in the present and in the future for M&A success.