| Author: | Davidson, K.M. |
| Title: | The winner's curse: a caution for top firms. |
| Journal: | Journal of Business Strategy
1990 : MAY-JUN, VOL. 11:3, p. 43-47 |
| Index terms: | STRATEGIC MANAGEMENT WEALTH |
| Language: | eng |
| Abstract: | History suggests that the advantages of wealth are easily frittered away if holders of that wealth are not forced to find more efficient rather than more expensive solutions. This lesson from history seems applicable to mergers and acquisitions. A solution to a competitive challenge cannot be bought. An acquisition can help, but the buyer must mold and manage the acquisition correctly to improve the buyer's business. Most acquirers do not understand enough about the business that they buy to do that. Maybe that is why most mergers are not successful. |
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