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The Five Pitfalls

Revisiting Conventional Wisdom on Outbound Acquisition
  • Shigeru Matsumoto
Chapter

Abstract

In this chapter, Matsumoto provides an in-depth exploration of the reasons managers may pursue outbound acquisitions. He discusses the five benefits that Japanese managers expect from overseas M&As: buying time, capturing market share, generating synergies, acquiring local talent, and taking advantage of the strong yen. However, Matsumoto highlights that within each of these expected benefits there lie inherent pitfalls. He analyzes each of these benefits and their potential pitfalls using three case studies of acquisitions in the United States and the United Kingdom by Japanese firms: Bridgestone, Nippon Sheet Glass, and Furukawa.

Reference

  1. Andrade, G, M. Mitchell, and E. Stafford. 2001. “New Evidence and Perspectives on Mergers.” Journal of Economic Perspectives (15) 2:103–120.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Shigeru Matsumoto
    • 1
  1. 1.Graduate School of ManagementKyoto UniversityKyotoJapan

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