Saturday, October 19, 2019

A critical evaluation of an article for Corporate Restructuring Essay

A critical evaluation of an article for Corporate Restructuring - Essay Example ich was under performing is bound to perform better post acquisition through better management and deployment of resources which might have been wanting prior to the acquisition. On the other hand an acquisition without resistance as a friendly acquisition is bound to experience lesser value creation post acquisition as the friendly firm already doing well and selling itself at a premium would leave further scope value creation in the long run. In fact, it can be value destroying. The recommendation of the study is that there should be no regulatory ban on hostile takeovers. Limitations : Hostile takeover as means of higher value creation has not been fully recognized. In the U.S. , law is in favor of incumbent management and against hostile takeovers (Sudarsanam & Mahate, 2006), (He & Wang, 2013). He, R., & Wang, T. (2013). Similar Technology, Complementary Technology and Long-term Shareholder Value of Acquiring Firm in Technology Acquisitions: Evidence from High-tech Industries in China. Information Technology Journal , 12, 1932-1940. Sudarsanam, S., & Mahate, A. A. (2006). Are Friendly Acquisitions Too Bad for Shareholders and Managers? Long-Term Value Creation and Top Management Turnover in Hostile and Friendly Acquirers. British Journal of Management , 17,

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