This book primarily deals with corporate restructuring through mergers and acquisitions (M&As). It critically examines all functions that must be performed in completing an M&A transaction. Accordingly, the book gives a bird’s-eye view of processes of M&A. Domestic and cross-border M&As are very similar in many respects even though differences between them also exist. This book discusses the cross-border financial issues such as international finance and multinational financial management, which also arise in cross-border M&A transactions.
Given the increasing importance of China as a global economic leader as well as Chinese companies’ growing outbound M&A activities, we devote the second volume of the book to China’s outward foreign direct investment and cross-border M&A activities. The case studies regarding Chinese foreign direct investment both in Greenfield and acquisition forms of volume II of the book give additional insights into challenging tasks of due diligence and postmerger cultural integration that foreign investors face.
The selected topics constitute the core of M&A procedures, the knowledge of which is imperative in M&A decision making. These tasks include developing a strategy for merger or acquisition, finding a target, conducting due diligence, appraising the value of the target company, negotiating, and structuring the deal. Finally, the book covers the most challenging phase of an M&A transaction, that is, successful integration of the acquiring and acquired companies. In short, the book is written as a concise guideline for those readers who are interested in gaining a clear understanding of what a merger or acquisition entails.
The M&A literature is a fragmented field of inquiry. The book brings together essential, practical insights from this vast literature in a short, but cohesive form that hopefully has excellent managerial relevance and applicability.
Keywords
business valuation, cost of capital, cross-border acquisition, cultural integration deal structuring, exchange rate, FDI and national security, foreign direct investment, merger and acquisition, strategy, target selection, real options, regulatory agencies