Abstract
We emphasize that a governance board with non-executive members of the board is a safeguarding instrument. The functions of the advisory role as well as the risk evaluation and approval are highly important when dealing with a request to launch an acquisition of another company. The non-executive members, however, have to carefully balance scrutinizing a proposal for hidden flaws against encouraging the management to pursue promising projects and accepting justifiable risks.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
11% = 13.5% × 0.66 + 6% × 0.33.
- 2.
Goodwill is the difference between purchase price and book value of the equity of the acquired company.
- 3.
The total good will in the accounts of the German DAX-companies (30 most important listed enterprises) is significantly higher than their equity.
- 4.
See chapter “Patterns of Family Enterprise’s Growth” above.
Bibliography
Dehlen, T. (2013). Acquisitions and divestitures in family firms: the role of socioemotional wealth. Dissertation University of St. Gallen.
Moyses-Scheingruber, S. (2019). Decision criteria in acquisition target screening. Dissertation Universität Trier.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Kormann, H. (2021). The Trade-Offs of Mergers and Acquisitions. In: Kormann, H., Suberg, B. (eds) Topics of Family Business Governance. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-58019-3_21
Download citation
DOI: https://doi.org/10.1007/978-3-030-58019-3_21
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-58018-6
Online ISBN: 978-3-030-58019-3
eBook Packages: Business and ManagementBusiness and Management (R0)