An approach to two-sided M&A fits based on a cross-efficiency evaluation with contrasting attitudes
| Autor: | Sheng-Qun Chen, Ying-Ming Wang, Hailiu Shi, Yi-Xin Lan |
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| Rok vydání: | 2017 |
| Předmět: |
Marketing
Cross efficiency 050208 finance Returns to scale Strategy and Management 05 social sciences Preference function Management Science and Operations Research Management Information Systems 0502 economics and business Value (economics) Mergers and acquisitions Econometrics Data envelopment analysis Operations management 050203 business & management Mathematics |
| Zdroj: | Journal of the Operational Research Society. 68:41-52 |
| ISSN: | 1476-9360 0160-5682 |
| DOI: | 10.1057/s41274-016-0005-6 |
| Popis: | 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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