Measuring Performance of Japanese Outbound Acquisitions

Determining the Success or Failure of 116 Outbound Acquisitions
  • Shigeru Matsumoto


In this chapter, Matsumoto examines 116 cases of Japanese outbound acquisitions. He determines that of these, only 9 can be conclusively judged successful, and 51 were failures. Matsumoto outlines three basic criteria for determining whether an overseas M&A is a success: the acquiring company’s survival, continuous ownership of the acquired firm, and a growth in firm profits. The author emphasizes that one must look at long-term, sustained profit growth rather than the immediate impact of the acquisition on share price to determine whether the acquisition was successful.


  1. Barney, J. 2001. Gaining and Sustaining Competitive Advantage. Second Edition Pearson Education.Google Scholar
  2. Kaplan, S, and M. Weisbach. 1992. “The Success of Acquisitions: Evidence from Divestitures.” The Journal of Finance (47) 1. Scholar
  3. Maksimovic, V, G. Phillips, and N.R. Prabhala. 2011. “Post-merger restructuring and the boundaries of the firm.” abstract, Journal of Financial Economics. (102) 2:317–343.CrossRefGoogle Scholar
  4. Mishina, K. 2007. The causes of strategy failure, Toyo: Keizai, Inc. (in Japanese)Google Scholar
  5. Singh, H, and C. Montgomery. 1987. “Corporate acquisition strategies and economic performance.” Strategic Management Journal 8 (4), Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

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

Personalised recommendations