Chat with AIExam 12: Making Alliances and Acquisitions Work
Discuss few ways of improving the odds for acquisition success.
(24) 
VerifiedConsidering the pre-acquisition phase: do not overpay for targets,and avoid a bidding war when premiums are too high; engage in thorough due diligence concerning both strategic and organizational fit.
Post-acquisition aspects include: addressing the concerns of multiple stakeholders,and trying to keep the best talents; being prepared to deal with roadblocks thrown up by people whose jobs and power may be jeopardized.
Which of the following motives for acquisition faces the resource-based issue of access to complementary resources?
(33) VerifiedD
One of the merits of alliances is to use them as real options.Elaborate.
(35) VerifiedOne important advantage of alliances lies in their value as real options.A real option is an investment in real operations as opposed to financial capital.A real options view suggests two propositions:
· In the first phase,an investor makes a small,initial investment to buy an option,which leads to the right to make a future investment without being obligated to do so.
· The investor then holds the option until a decision point arrives in the second phase and then decides between exercising the option or abandoning it.
Alliances have emerged as great instruments of real options because of their flexibility to sequentially scale up or scale down the investment.
Which of the following reasons for cross-border acquisition failure is associated with pre-acquisition?
(26) _____ alliances are based on ownership or financial interest between the firms.
(29) A(n)____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.
(37) Antitrust authorities provide easy approvals for both alliances and acquisitions with less intervention.
(39) Pre-acquisition analysis often focuses on strategic fit,which is the effective matching of ____ strategic capabilities.
(29) In the context of acquisitions,the similarity in cultures,systems,and structures between firms is called _____.
(38) Who benefits the most from the acquisition premium valued during an acquisition?
(41) Strategic investments in an equity-based alliance involve one partner investing in another.
(35) Mergers and acquisitions represent the largest proportion of foreign direct investment (FDI)flows.
(39) Equity-based alliances include co-marketing,research and development,contracts,turnkey products,strategic suppliers,and strategic distributors.
(36) Alliances permit firms to sequentially increase their investment should they decide to pursue acquisitions.
(35) Alliances have emerged as great instruments of real options because of their flexibility to sequentially scale up or scale down investment.
(42) Which of the following occurs in the uncoupling stage of an alliance dissolution?
(36) The formal institution-based view that drives mergers and alliances is based on the normative and cognitive pillars.
(29) 
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