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The Handbook of Financing Growth: Strategies, Capital Structure, and M&A Transactions, Second Edition
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The Handbook of Financing Growth: Strategies, Capital Structure, and M&A Transactions, Second Edition

by KENNETH H. MARKS, LARRY E. ROBBINS, GONZALO FERNÁNDEZ, JOHN P. FUNKHOUSER, D.L. WILLIAMS
September 2009
Intermediate to advanced content levelIntermediate to advanced
672 pages
18h 40m
English
Wiley
Content preview from The Handbook of Financing Growth: Strategies, Capital Structure, and M&A Transactions, Second Edition
CHAPTER 3
Acquisitions, Recapitalizations, and Exits
Mergers and acquisitions (M&A) transactions can be a viable alternative for accomplishing a number of strategic objectives in the context of building and realizing value for emerging growth and middle-market companies. This chapter is intended to provide an overview of the buy-side and sell-side processes, and a framework for thinking about and planning execution of these initiatives with a focus on financing the deal.

ACQUISITIONS

Acquisitions can meet a number of goals if approached and executed as part of a long-term strategy. Some of the typical reasons executives pursue acquisitions include:
• To accelerate revenue growth.
• To expand into a new geography or obtain a physical footprint in a new location.
• To access a new market or new customers.
• To access technology.
• To strengthen the pool of talent and capabilities.
• To fill in a product or service line.
• To reduce costs.
• To capture market share.
• To prevent a competitor from gaining these advantages.
Figure 3.1 provides an overview of the acquisition process. The first phase addresses finding a target company to buy; this process begins with the strategic plan, which lays the foundation to determine many of the parameters and the focus of the process. Take note that this process is really a condensed restatement of our basic financing process presented in Figure 1.1, highlighting a specific strategic initiative (the acquisition). The second phase of the process is ...
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Publisher Resources

ISBN: 9780470525999Purchase book