Measuring Performance of Japanese Outbound Acquisitions
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.
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