企业并购文献综述及外文文献资料

1、本文档包括改专题的：外文文献、文献综述一、外文文献Financialsynergyinmergersandacquisitions.EvidencefromSaudiArabiaAbstractBusinessestodayconsidermergersandacquisitionstobeanewstrategyfortheircompanysgrowth.Companiesaimtogrowthroughincreasingsales,purchasingassets,accumulatingprofitsandgainingmarketshare.Thus;thebestwaytoach

2、ieveanyoftheabove-mentionedtargetsisbygettingintoeitheramergeroranacquisition.Asamatteroffact,growththroughmergersandacquisitionshasbeenacriticalpartofthesuccessofmanycompaniesoperatingintheneweconomy.Mergersandacquisitionsareanimportantfactorinbuildingupmarketcapitalization.Basedonthreestructuredin

3、terviewswithmajorSaudiArabianbanksithasbeenfoundthatmergersmotivatedbyeconomiesofscaleshouldbeapproachedcautiously.Similarly,companiesshouldalsoapproachverticalmergerscautiouslyasitisoftendifficulttogainsynergythroughaverticalmerger.Firmsshouldseekoutmergersthatallowthemtoacquirespecializedknowledge

4、.Ithasalsobeenfoundthatfirmsshouldlookformergersthatincreasemarketpowerwhilstavoidingunrelatedmergersorconglomeratemergers.Keywords:Synergy,MergersandAcquisitions,SaudiArabia1.IntroductionThereisamajordifferencebetweenmergersandacquisitions.Mergersoccurbetweensimilarlysizedcompaniesandthecollaborati

5、onisfriendlybetweenbothcompanies.However,Acquisitionsoftenoccurbetweendifferentlysizedcompaniesandthepartnershipisusuallyforcedandhostile.WheelenandHunger(2009)defineamergerasatransactioninvolvingtwoormorecorporationsinwhichstockisexchangedbutinwhichonlyonecorporationsurvives.Inotherwords,thetwocomp

6、aniesbecomeoneandthenameforthecorporationbecomescompositeandisderivedfromthetwooriginalnames.Furthermore,anacquisitionisthepurchaseofacompanythatiscompletelyabsorbedasanoperatingsubsidiaryordivisionoftheacquiringcorporation(WheelenandHunger,2009).Theauthorsalsostatethathostileacquisitionsarecalledta

7、keovers.Themainreasonforfirmsenteringintomergersandacquisitions(M&A)istogrow,andcompaniesgrowtosurvive(Akinbuli,2012).Growthstrategiesexpandthecompanysactivitiesandaddtoitsvaluesincelargerfirmhavemorebargainingpowerthansmallerones.Afirmsustaininggrowthwillalwayshavemoreopportunitiesforadvancement,pr

8、omotionsandmorejobstoofferpeople(WheelenandHunger,2009).Ingeneral,mergersanddifferenttypesofacquisitionsareperformedinthehopeofrealizinganeconomicgain.Forsuchabusinessdealtotakeplace,thetwofirmsinvolvedmustbeworthmoretogetherthaneachwasapart.AfewoftheprospectiveadvantagesofM&Aincludeachievingeconomi

9、esofscale,combiningcomplementaryresources,garneringtaxadvantages,andeliminatinginefficiencies.Otherreasonsforconsideringgrowththroughacquisitionscontainobtainingproprietaryrightstoproductsorservices,increasingmarketpowerbypurchasingcompetitors,shoringupweaknessesinkeybusinessareas,penetratingnewgeog

10、raphicregions,orprovidingmanagerswithnewopportunitiesforcareergrowthandadvancement(Brown,2005).ManyfirmschooseM&Aasatooltoexpandintoanewmarketornewareaofexpertisesinceitisquickerandcheaperthantakingtheriskalone.Furthermore,M&Ahappenwhenseniorexecutivesfeelenthusiasticandexcitedaboutapotentialdeal;th

11、eideaofsuccessfullypursuingandtakingoveranothercompanybeforethecompanyscompetitorsareabletodoso.Competitioninagrowingindustrydrivesfirmstoacquireothers.Infact,asuccessfulmergerbetweencompaniesincreasesbenefitsfortheentirecorporation.However,failuresalsooccurinM&AasindicatedbyHaberbsergandRieple(2001

12、)andAkinbuli(2012).Theyshowedthat50%ofacquisitionsareunsuccessful;theyincreasemarketpowerbutdonotnecessarilyincreaseprofits.Brown(2005)explainsthereasonsforthehighfailurerateofM&Aasfollows:Over-optimisticassessmentofeconomiesofscale.Economiesofscaleareusuallyachievedatcertainbusinesssize.However,exp

13、ansionbeyondtheoptimumlevelresultsindisproportionatecostdisadvantagesthatleadtovariousdiseconomiesofscale.Inadequatepreliminaryinvestigationcombinedwithaninabilitytoimplementtheamalgamationefficiently.Resistancetochangeandtheinabilityfortheacquiredcompanytomanagechangewellisamainreasonforfailureduet

14、otheresistanceoftheemployeesandmanagementofbothcompaniesinvolved.Insufficientappreciationofthepersonnelproblems,whichwillarise,isduemainlytothedifferingorganizationalculturesineachcompany.Dominanceofsubjectivefactorssuchasthestatusoftherespectiveboardsofdirectors.Therefore,draftingcarefulplansbefore

15、andafterthemergerisanecessitythatshouldnotbeoverlooked.Somecompaniesfindthesolutioninhiringachangemanagerwhowilladdvalueandbettermanagethetransitionofthemarriagebetweenbothcompanies(Brown,2005).SynergyinM&AandfinancialsynergyThissectiondiscussestheliteraturereviewinordertoidentifytheimportanceofacqu

16、iringfinancialsynergyintheM&A.SynergyinM&ASynergy,asdefinedinthebusinessdictionary,isthestateinwhichtwoormoreagents,entities,factors,processes,substances,orsystemsworktogetherinaparticularlyfruitfulwaythatproducesaneffectgreaterthanthesumoftheirindividualeffects.Synergyisthemagicforcethatallowsforen

17、hancedcostefficienciesofthenewbusiness.Synergytakestheformofrevenueenhancementandcostsavings(Mergersandacquisitions:Definition,n.d.).Synergyisalsoexpressedasanincreaseinthevalueofassetsasaresultoftheircombination.Expectedsynergyisthejustificationbehindmostbusinessmergers.Forexample,the2002combinatio

18、nofHewlett-PackardandCompaqwasdesignedtoreduceexpensesandcapitalizeoncombiningHewlett-PackardsreputationforqualitywithCompaqsimpressivedistributionsystem(SynergyBusinessDefinition,n.d.).Throughresearchithasbeennotedthatsynergyistheconceptthattwobusinesseswillgenerategreaterprofitstogetherthantheycou

19、ldseparately(WheelenandHunger,2009).Synergyissaidtoexistforadivisionalcorporationifthereturnoninvestmentofeachdivisionisgreaterthanwhatthereturnwouldbeifeachdivisionwereanindependentbusiness(WheelenandHunger,2009).Inordertosucceedcooperationbetweenthepartnersisthebasicingredientforachievinggrowththr

20、oughsynergy(Rahatullah,2010).Thisrequirespartnerstobuildtrust,commitment,andsecureconsensus,toachievetheirtargets(Gronroos,1997;RingandVan-de-Ven,1994).Synergycantakeseveralforms.AccordingtoGooldandCampbell(1998)synergyisdemonstratedinsixways:benefitingfromknowledgeorskills,coordinatedstrategies,sha

21、redtangibleresources,economiesofscale,gainingbargainingpoweroversuppliersandcreatingnewproductsorservices.M8Aresultinthecreationofsynergies,thesharingofmanufacturingfacilities,softwaresystemsanddistributionprocesses.Thistypeofsynergyisreferredtoasoperationalsynergyandisseenmostlyinmanufacturingindus

22、tries.Anothermotiveforforminganacquisitionisgaininggreaterfinancialstrengthbypurchasingacompetitor,whichincreasesmarketshare.Theaimofmergersandacquisitionsistoachieveimprovementforbothcompaniesandproduceefficiencyinmostofthecompanysoperations.(HaberbergandRieple,2001).However,Brown(2005)summarizesth

23、esourcesofsynergythatresultfromM8Aunderthefollowingheadlines:Operatingeconomieswhichinclude:Economiesofscale:Horizontalmergers(acquisitionofacompanyinasimilarlineofbusiness)areoftenclaimedtoreducecostsandthereforeincreaseprofitsduetoeconomiesofscale.Thesecanoccurintheproduction,marketingorfinancediv

24、isions.Notethatthesegainsarenotexpectedautomaticallyanddiseconomiesofscalemayalsobeexperienced.Thesebenefitsaresometimesalsoclaimedforconglomeratemergers(acquisitionofcompaniesinunrelatedareasofbusiness)infinancialandmarketingcosts.Economiesofverticalintegration:Someacquisitionsinvolvebuyingoutother

25、companiesinthesameproductionchain.Forexample,amanufacturerbuysoutarawmaterialsupplieroraretailer.Thiscanincreaseprofitsthrougheliminatingthemiddlemaninthesupplychain.Complementaryresources:Itissometimesarguedthatbycombiningthestrengthsoftwocompaniesasynergisticresultcanbeobtained.Forexample,combinin

26、gacompanyspecializinginresearchanddevelopmentwithacompanystronginthemarketingareacouldleadtogains.Combiningtheexpertiseofbothfirmswouldbenefiteachcompanythroughthegainedknowledgeandskillsthatindividuallytheylack.Eliminationofinefficiency:Ifeitherofthetwocompanieshadbeenbadlymanaged;itsperformanceand

27、henceitsvaluecanbeimprovedbytheeliminationofinefficienciesthroughM&A.Improvementscouldbeobtainedintheareasofproduction,marketingandfinance.Marketpower;Horizontalmergersmayenablethefirmtoobtainadegreeofmonopolypowerwhichcouldincreaseitsprofitability.Coordinatedstrategiesbetweenbothcompanieswillleadth

28、eentireorganizationingainingcompetitiveadvantage.Gainingbargainingpoweroversuppliersisrealizedsincethecompanyislargerinsizeafterthemerger.Financialgains;Companieswithlargeamountsofsurpluscashmayseetheacquisitionofothercompaniesasthebestapplicationforthesefunds.Sharedtangibleresourcessuchassharingabi

29、ggerbuilding,moreofficesupplies,equipment,manufacturingfacilitiesandresearchanddesignlabswillalsoleadtoareductionincoststranslatedintobetterfinancialperformance.McNeil(2012)identifiesthattheshareholdersofabusinessunderM&Aprocessmaybenefitfromthesaleoftheirstocks,thisisespeciallytrueiftheM&Aiswithabe

30、tter,biggerandmorereputableprospectivepartner.Others;suchassurplusmanagementtalent,meaningthatcompanieswithhighlyskilledmanagerscanmakeuseoftheirqualifiedpersonnelonlyiftheyhaveproblemstosolve.Theacquisitionofinefficientcompaniesallowsformaximumutilizationofskilledmanagers.Incorporatingtheeffortsofb

31、othmanagementteamswilldrivethecreationofinnovativeproductsorservices.ThesynergyfactorprevailsintheM&Awhenthefirmsproduceagreaterreturnthanthetwoindividualfirmsowingtoreasonssuchasimprovementsinefficiencyandanincreaseinmarketpowerforthemergedoracquiredfirms(BerkovitchandNarayana,1993).Financialsynerg

32、yAsdefinedbyKnoll(2008),financialsynergiesareperformanceadvantagesgainedbycontrollingfinancialresourcesacrossbusinessesoffirms.Thereexistfourtypesoffinancialsynergies,whichare:Reductionofcorporaterisk:Reductionofcorporateriskisincreasingtheriskcapacityoftheoverallfirm,whichmeanstheabilityofthefirmto

33、bearmorerisk.Meaningthatbyincreasingtheriskcapacitytheshareholderswillinvestmoreinthecompanyandthefirmwillgainbenefitssuchascoinsuranceeffects.Establishmentofinternalcapitalmarket:Establishinginternalcapitalgainsmeansthatthefirmwilldecreaseitsfinancingcostsandwillincreasefinancialflexibilitywhichres

34、ultsinthecompanyhavinghigherliquidityandtheabilitytopayitscreditorseasily.Taxadvantages:Taxadvantagesbyreducingthetaxliabilitiesofthefirmusingthelossesinonebusinesstooffsetprofitsintheotherbusinessreferredtoasprofitaccounting.Financialeconomiesofscale:Financialeconomiesofscalereducingtransactioncost

35、inissuingdebtandequitysecurities(Knoll,2008).MethodologyandresultsForthisproject,themethodofinterviewswasusedduetoitbeingthemostappropriatewaytogatherinformationabouttheinterpretationofevents,astowhysomemergersproducesynergywhileothersdonot;andtounderstandthereasonswhycompaniesenterintomergers.InSau

36、diArabiaitisdifficulttosecureresponsesfromseniorexecutives.Approachingsuchapersonisnotonlydifficultprotocolwisebuttherearebureaucratichurdles.Thequantitativeanalysisismoresuitableforlargescaledatacollection(DenzinandLincoln,1997).Whereas,qualitativeresearchprovidestheresearcherwiththeperspectiveofta

37、rgetaudiencemembersthroughcaptivationanddirectinteractionwiththepeopleunderstudy(GlesneandPeshkin,1992).Thesemethodshelptocomprehendwhatothersperceiveofacertainphenomenon,postulatesCreswell(1994).Theplannedinterviewmethodwastouseastructuredinterview.Inastructuredinterview,theresearcherknowsinadvance

38、whatinformationisneededandasksapredeterminedsetofquestions(SekaranandBougie,2009).Thesamequestionsareaskedofallinterviewees,whichallowsforbettercomparisonoftheresponsesthanunstructuredinterviews,wheretheintervieweesareaskeddifferentquestions.Thestructuredinterviewprocessdoesallowtheresearchertoaskdi

39、fferentfollowuporprobingquestionsbasedontheintervieweesresponse.Thisallowstheinterviewertoidentifynewfactorsandgainadeeperunderstandingofthetopic(SekaranandBougie,2009).SincetheintervieweeswerelocatedindifferentpartsofSaudiArabiatheinterviewswerescheduledinadvanceandconductedfacetoface.Thedatawasgat

40、heredbytakingnotesduringtheinterviews,whichwerenotrecordedasthatmayhaveseemedtoointrusive.Whenconductinginterviewsitisimportanttoconducttheminamannerthatisfreeofbiasorinaccuracies.AccordingtoSekaranandBougie(2009),biascanbeintroducedbytheinterviewer,intervieweeorthesituation.Interviewerscanintroduce

41、biasbydistortingtheinformationthattheyhearsoitalignswiththeirexpectedresponsestothequestionorthroughsimplemisunderstandings.Topreventthis,therespondentsanswersweresummarizedbacktothembeforemovingontothenextquestion.Intervieweescanintroducebiasiftheydonotliketheintervieweroriftheyphrasetheanswerstobe

42、biasedtowardswhattheythinktheinterviewerwantstohear.Sincetheintervieweeswereobtainedthroughreferrals,itishighlyunlikelythattheygavefalseresponses.Also,thebasicareaofresearchwasdiscussedwiththeinterviewees,butnohypothesiswasadvancetothem,suchthattheywouldskewtheiranswerstowhattheythoughtheinterviewer

43、wantedtohear.Threecompanieswereinterviewedandaskedaspecificsetofquestions(seeAppendix).TherearenumerousreasonstointerviewthreecompaniesinSaudiArabia.Thesearethefollowing:TheM&AinSaudiArabiaarenormallycarriedoutbylargesizecompanies.Itisdifficulttoreachouttotheseniormanagerstodiscusssuchissues.Theoffi

44、cersarealsotiedbycompanyconfidentialityrulestonotdivulgeinformation.ThenumberofM&Aisalsosignificantlylessincomparisonwithothercountries.Theresearchers,usingdiverseresourcesincludingpersonalcontactsandformalrequests,wereabletoreachouttothreeofthemajorcompaniesoftheKingdom.AninterviewwasconductedwithN

45、ationalCommercialBank(NCB)NCBisaninternationalbankheadquarteredinSaudiArabiaandengagedinpersonal,businessandprivatebanking,andwealthmanagement(NCB,2011).AnotherinterviewwasdonewithSambaFinancialGroup.SambaisalsoaninternationalbankheadquarteredinSaudiArabiathatisengagedinpersonalandbusinessbanking(Sa

46、mba,2011).ThethirdcompanythatwasinterviewedwasSavolaHoldingCompany,whichisheadquarteredinJeddah,SaudiArabiaandisengagedinthefoodindustry.Throughsubsidiarycompanies,Savolaisengagedinthemanufacturingofvegetableoils,dairyproductsandfoodretailingoperationsbothinSaudiArabiaandotherinternationalmarkets.Du

47、etostrictconfidentialityofthecompaniesinterviewed,thenamesofthepeoplewillnotbementionedortheirtitles.Thiswasthemostimportantconditioninordertoconducttheseinterviews.Eachofthethreecompanieshasbeeninvolvedinsignificantmergers.NCBsmostsignificantmergerwaswhenitacquiredaTurkishbank,TurkiyeFinansKatilmBa

48、nkin2008.SambasmostsignificantmergerwasitsacquisitionofCairoBankin1999.SavolasmostsignificantacquisitionwasitsacquisitionofAl-Maraiin1991.NCBhasengagedinfourmergersoverallandthreeinternationalmergers.InadditiontoitsacquisitionoftheTurkishbank,itacquiredEstateCapitalHoldings,TheCapitalPartnershipGrou

49、pLimitedandNCBCapital.TheacquisitionoftheTurkishbankwasconsidereditsmostsuccessfulacquisitionbecauseitallowedNCBtoexpandintoanewinternationalmarketwithstronggrowth.WhileNCBdoesnotconsideranyofitsacquisitionstobeafailure,ithasrecognizedlossesthroughgoodwillimpairment,evenintheTurkishbankacquisition.S

50、ambasmostprominentM8AhasbeenwithCairobankofEgypt.Savolahasengagedinabout10mergersincludingafewinternationalmergers.ItconsidersitsacquisitionofPanda(asupermarketchain)in1998tobeitsmostsuccessfulbecauseitallowedSavolatogainamajorpresenceinthefoodretailingmarketandincreasesrevenuessignificantly.Savolah

51、ashadacoupleofmergersthatitconsideredtobefailures.OnesuchexamplewaswhenitacquiredarealestatecompanyinJordan.ThiscompanywasoutsideSavolascorebusinessandoutsideitshomecountry.Savolaslearningfromthisfailurewasnottoinvestoutsideitscorebusinessinaforeigncountryastherewasnoabilitytocreateanyvaluethroughth

52、ismergeranditwasinvestinginacountrythatitdidnotknowaswellasitshomecountry.AnotherfailedmergeroccurredwhenitacquiredanedibleoilcompanyinKazakhstan.Thismergerfailedbecauseeventhoughtheacquiredcompanyhadgoodfundamentals,thevaluecreationmechanismswerequitedifferentbetweenthetwocompanies.Strategicmotivat

53、ionsformergerswerediscussedwiththecompaniesandSambaprovideddetails.Onemotivationistoincreaselinesofbusiness.Anothermotivationistomoveintoanewgeographicarea.Inmanycaseswhenexpandingintoanewcountry,itiseasiertoacquireanexistingbusinessthantrytostartanewone.Anothermotivationistoincreasemarketshare.Part

54、icularlyinamatureindustry,acompanycangainmarketsharequicklythroughanacquisition,whileitisusuallyaslowprocesstogainmarketshareorganicallyinanincrementalmanner.Allthecompaniestriedtoachievecompanygrowthandsynergyintheirmergers.Thecriteriaandselectionprocessformergerswerealsodiscussedwiththecompanies.S

55、avolaworkedwithfinancialinstitutionstoidentifyacquisitiontargetcompanies.Savolalookedforcompaniesthatwereamongtheleadersintheirrespectivemarkets.Savolabelievedthatcompaniesthatwereleadersgenerallyhadgoodprocessesandwerewellmanaged,sotheiroperationswouldbegoodtoacquire.Afterthefailedmergerwiththereal

56、estatecompany,Savolalookedtoacquirecompaniesrelatedtoitscorefoodmanufacturingandsalesbusiness.Allcompaniesobviouslyreviewedfinancialstatementscloselytoassessthefinancialconditionoftheacquiredfirm.Sambanotedthatsometimesinthebankingandfinancialindustry,strongbankswillacquirebanksthatareinaweakfinanci

57、alconditioninarescueoperation,oftenduetopoliticalreasons.Inreviewingcandidatesforamerger,Savolaengagesitsoperationsandtechnicalteamtoassessthetargetcompanysoperation,processesandpotentialfitintothebusinessgroup.Thethreeinterviewedcompaniesusevariousmetricstoevaluatethesuccessofthemerger.Savolaevalua

58、testherevenuegrowthofthesectorwheretheacquisitionoccurredalongwiththemarketshareandoperatingcost.Thegoalsaretoincreaserevenue,increasemarketshareorreduceoperatingcost.Sambaevaluatedsimilarmetricsofmarketshareandoperatingcost.Sambanotedthatitusuallytakesuntilthesecondyearafteramergertoevaluateitssucc

59、ess.Inthefirstyear,thereareonetimecostsassociatedwithintegrationcostsofthemerger.Itusuallytakesuntilthesecondyeartoseereducedoperatingcostsfromactivitiessuchasclosingandconsolidatingbranches.Thedifferentwaystoobtainsynergyinamergerwerediscussedwiththecompanies.Savolalookedtoobtainsynergythroughecono

60、miesofscale,asacquisitionswouldaddtothecompanysshipmentvolume,whichwouldallowthecompanytoreducefreightanddistributioncosts.Sambaalsolookedtoobtainsynergythrougheconomiesofscaleandeliminatingtheduplicationofactivities.WhenitacquiredCairobank,whichhadpreviouslyacquiredUnitedSaudiCommercialBank,Sambawa