Valuation in Europe – European companies will be less valuable. An interview with Prof. Aswath Damodaran and Prof. Christopher Kummer about valuation and Mergers & Acquisitions by Trend (Austria)! They also discuss how European companies can make use of M&A to grow their value. […] Read more
by Ernst & Young
Companies need a new capital strategy for Asia: one that prioritizes depth in each country rather than breadth of presence across the region. This, the second in a series of briefing papers, discusses how multinational companies should shift from a land-grab strategy in emerging Asia to a focus on profitability. […] Read more
The latest deals data shows that the volume of developed market investments into emerging markets (D2E) hit a 10-year low over the second half of 2015, but emerging market deals with one another showed strong growth over the same period. Between July and December 2015, the number of D2E deals fell by 3 percent to 541, the lowest number in 10 years. The yearly total is also the lowest in 10 years, at 1101 D2E deals, 9 percent down on 2014. […] Read more
by Elsevier Ltd.
This study analyzes how foreign multinational enterprises respond to uncertainty in their cross-border acquisitions in emerging economies and, specifically in Brazil, given the institutional differences that separate the home and host countries. We analyze how institutional distance impacts multinational enterprises strategy in taking a partial or full ownership stake in their Brazilian acquisitions. […] Read more
by Elsevier Ltd.
This paper aims to revisit and reinforce the early development of Farmers Fox Theory (Reddy et al., 2014a) by analysing three cases in the cross-border inbound acquisitions stream. A qualitative case method is adopted to explore the findings from the sample cases, which are the Vodafone–Hutchison telecom deal, the Bharti Airtel–MTN broken telecom deal, and the Vedanta–Cairn India oil deal. We highlight discussions on organizational factors, due diligence issues, deal characteristics, and country-specific determinants. […] Read more
Rapidly growing companies in the developing world can prepare themselves to do battle on a global stage by gaining access to vital capabilities through acquisitions or partnerships. It is extremely difficult for emerging market economies to sustain the rapid growth that stems from industrialization. […] Read more
As Albert Einstein shrewdly remarked: “If you always do what you always did, you will always get what you always got.” In the consumer marketplace in the 21st century we live in an age where innovation and reinvention is the key to growth. That is the challenge – and opportunity. […] Read more
by Baker & McKenzie
The fundamental drivers of global transactions are pointing to a continued strong upturn in M&A and IPOs over the next three years. Global economic growth is expected to accelerate, and low interest rates and easy credit conditions in key countries are likely to maintain upward momentum in equity markets. […] Read more
by Elsevier Ltd.
We analyze the extent to which promoters of firms listed on the Bombay Stock Exchange are using rights issues to circumvent regulatory provisions related to creeping acquisitions. We find that promoters use rights issues that do not have specific objectives for purposes of realizing an increase in their shareholdings. We find that a rights issue often follows a year in which the promoter has realized a loss of shareholdings. […] Read more