Chapter 7

Mergers and Acquisitions

The delta between a good deal and a bad one is much bigger than in developed markets. If things go well, investors stand to make a lot of money. But if things go badly, investors can lose big.

—PricewaterhouseCoopers, Getting on the Right side of Delta, A dealmaker’s guide to growth economies1

When companies enter a new market and establish operations through either a joint-venture arrangement or a wholly-owned subsidiary, there are two establishment modes they can employ: greenfield entry or acquisitions. Greenfield entry refers to the building up of a new operation from scratch, for example, by purchasing or building of new facilities. On the other hand, acquisitions refer to the purchase of one company by ...

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