《国际企业并购》Ch4- MA Strategy_Updated.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Serial Acquirers: General Electric and Cisco All Rights Reserved. ? May not be reproduced, copied, or otherwise used without the express, written permission of Dr. Patrick Gaughan GE engages in many acquisitions each year 1999: Bought 125 companies Has a proven model for valuing, managing, and integrating companies Cisco: Known to buy 1 to 2 companies per month Bought 51 companies in the 2 ? year period preceding March 2000 This slowed a lot in the 2000s GE Exited Old Businesses Since 2001 Insurance Motors used in appliances and heating, ventilation, and air conditioning systems Industrial diamonds used in manufacturing Business outsourcing unit based mostly in India Source: Wall Street Journal, Sept. 11, 2006 All Rights Reserved. ? May not be reproduced, copied, or otherwise used without the express, written permission of Dr. Patrick Gaughan Hispanic television Movies Health-care information technology Homeland-security systems Water treatment Home mortgages Digital media Source: Wall Street Journal, Sept. 11, 2006 GE Entered New Businesses Since 2001 All Rights Reserved. ? May not be reproduced, copied, or otherwise used without the express, written permission of Dr. Patrick Gaughan Post-Merger Integration: Cisco Model All Rights Reserved. ? May not be reproduced, copied, or otherwise used without the express, written permission of Dr. Patrick Gaughan As soon as deal is completed they send in their post-merger integration SWAT team All personnel are integrated into Cisco The team gives each target company information about Cisco The employees know their new positions, titles, compensation package They are “mapped” into new jobs with specific responsibilities. Related vs. Unrelated Diversification All Rights Reserved. ? May not be reproduced, copied, or otherwise used without the express, written permission of Dr. Patrick Gaughan Related Diversification: Diversify into fields r