The Portable MBA in Finance and Accounting, 3rd Edition

568 Making Key Strategic Decisions and $20 billion of annual long-distance telephone revenues, along with the NCR acquisition, w ...

Profitable Growth by Acquisition 569 What doomed the Quaker-Snapple deal? One factor was haste. Quaker was so worried about beco ...

570 Making Key Strategic Decisions In this case, Quaker ’s management was guilty of two mistakes: failure to ana- lyze Snapple’s ...

Profitable Growth by Acquisition 571 approach that fights the tendency for managers to become emotionally at- tached to a deal. ...

572 Making Key Strategic Decisions can’t or choose not to develop. In this case, the strategy is driven by their cus- tomer ’s d ...

Profitable Growth by Acquisition 573 sales forces of the two companies remained independent and Cerent’s sales- people received ...

574 Making Key Strategic Decisions significant number destroy shareholder value, some spectacularly. In this sec- tion, we more ...

Profitable Growth by Acquisition 575 The deal would destroy $200,000 of value. Note that this is in spite of the fact that there ...

576 Making Key Strategic Decisions “Finally, there is the central justification of the deal: cross-selling each other ’s product ...

Profitable Growth by Acquisition 577 doesn’t matter whether this increased output is generated internally or ac- quired external ...

578 Making Key Strategic Decisions Tax Savings Corporations in the U.S. pay billions each year in corporate in- come taxes. M&am ...

Profitable Growth by Acquisition 579 of financial distress. Because most acquisitions provide some degree of diversi- fication, ...

580 Making Key Strategic Decisions annual cash f low savings would be $1.5 million. MC’s financial analysts are reasonably certa ...

Profitable Growth by Acquisition 581 synergy, or potential for value creation. For the deal to benefit the acquirer ’s sharehold ...

582 Making Key Strategic Decisions place and have there been previous acquisition attempts? If so, how have they fared? For a pr ...

Profitable Growth by Acquisition 583 stockholders on the other hand, have seen the postmerger value of the Daimler-Benz shares t ...

584 Making Key Strategic Decisions expense for book purposes over a period of not more than 40 years. The amor- tization of purc ...

Profitable Growth by Acquisition 585 B.B. Lean Inc. ($ millions) Pooling Method Cash $ 9 Equity $40 Land 22 Building 9 Goodwill ...

586 Making Key Strategic Decisions plan or to divest certain assets. These concessions can have important implica- tions for mar ...

Profitable Growth by Acquisition 587 dismal record is attributable to various causes, including ill-conceived acquisi- tion stra ...