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Business Combinations

  • Kenneth Midgley
  • Ronald G. Burns
Chapter

Abstract

Takeover bids make the financial headlines some time during nearly every month of the year, and many reports are compelling reading for people interested in industry and finance. This is particularly so as many of the companies are known to everyone. The object of this chapter is to consider some of the practical problems inherent in takeovers and amalgamations. In particular we consider the art of interpreting published accounts and methods of valuing businesses. This is followed by a discussion of the procedural matters to be observed when buying another company, a description of some of the defences used in fending off takeover bids and examples of where these have proved successful. The work of the Monopolies Commission and Takeover Panel is then examined, and the chapter is concluded with an account of recent business takeovers and mergers.

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Further Reading

  1. ‘Acquisitions and Amalgamations’, Economic Trends, April 1963 and November 1965.Google Scholar
  2. L. R. Amey, The Efficiency of Business Enterprises (London: Allen & Unwin, 1969).Google Scholar
  3. L. R. Amey and D. A. Egginton, Management Accounting: A Conceptual Approach (London: Longman, 1973) ch. 4.Google Scholar
  4. G. D. Bond, Corporate Finance for Management (London: Butterworth, 1974) chs 17, 18, 27, 28.Google Scholar
  5. R. J. Chambers, Financial Management (London: Sweet & Maxwell, 1967).Google Scholar
  6. P. Hunt, C. M. Williams and G. Donaldson, Basic Business Finance (Homewood, Ill.: Irwin, 1974) ch. 28.Google Scholar
  7. F. R. Jervis, The Economics of Mergers (London: Routledge & Kegan Paul, 1971).Google Scholar
  8. R. Jones and O. Harriott, Anatomy of a Merger (London: Pan, 1970).Google Scholar
  9. G. Meeks, Disappointing Marriage: a Study of the Gains from Merger (Cambridge University Press, 1977).Google Scholar
  10. K. Midgley and R. G. Burns, Accounting Case Studies (London: Macmillan, 1971) Case Study 4.Google Scholar
  11. K. Midgley and R. G. Burns, Case Studies in Business Finance and Financial Analysis (London: Macmillan, 1971) Case Study 5.Google Scholar
  12. R. W. Moon, Business Mergers and Takeover Bids, 5th ed. (London: Gee, 1976).Google Scholar
  13. G. D. Newbould, Management and Merger Activity (Liverpool: Guthstead, 1970).Google Scholar
  14. C. K. Rowley, ‘The Monopolies Commission and Rate of Return on Capital’, Economic Journal, March 1969.Google Scholar
  15. J. M. Samuels, R. E. V. Groves and C. S. Goddard, Company Finance in Europe (London: Institute of Chartered Accountants, 1975).Google Scholar
  16. J. M. Samuels and F. M. Wilkes, Management of Company Finance (London: Nelson, 1971) ch. 15.Google Scholar
  17. M. A. Weinberg, Takeovers and Amalgamations, 3rd ed. (London: Sweet & Maxwell, 1971).Google Scholar
  18. C. A. Westwick, The Accuracy of Profit Forecasts in Bid Situations (London: Institute of Chartered Accountants, 1972).Google Scholar

Copyright information

© Kenneth Midgley and Ronald G. Burns 1979

Authors and Affiliations

  • Kenneth Midgley
  • Ronald G. Burns

There are no affiliations available

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